Insights | Edition 3
Lease Advisory Implications and expectations The UK’s upward-only rent review ban One year after the English Devolution and Community Empowerment Bill unexpectedly proposed banning upward-only rent reviews (UORRs), Sam Boothby, Partner in our London lease advisory team, considers where the ban will apply, the uncertainty around its enforcement, how the market has responded, and where landlords and occupiers should focus their attention now. The ban – what’s caught & what isn’t The ban applies to all business leases whether inside or outside the 1954 Act. This does not include agricultural leases which have their own rent review mechanics under separate legislation.
by regulations, and it is expected to be
What are the practical implications for lease advisory?
sometime in 2027/28. Until then, existing
As a result of this, there are a few
market practice remains unchanged.
practical implications to consider.
the legislation comes into force with an
However, a disconcerting ‘retrospective
UORR clause remains enforceable even
A deal currently in legals with an upward
trigger date’ was introduced whereby an
if the review date falls after the ban.
only or collared mechanism has a window
option to renew, whether in the lease or
The position changes on renewal: any
to complete as currently drafted with the
in a separate side letter which contains a
1954 Act renewal granted after the ban
2027/28 deadline in mind.
rent review clause and was created post
commences must comply, regardless of
17 March 2026 will be caught by the ban.
An upcoming lease which expires in
when the original lease was granted.
An Agreement for Lease for the purpose
the next 12-18 months now presents
of renewing an existing lease would also
early renewal and re-gear opportunities.
be implicated. The trigger date will not
Landlords can lock in UORR terms before
apply to a reversionary lease as the lease
the legislation takes effect; occupiers
date will be the date of the grant.
know this and their negotiating hand is
For the most part, the ban will not be retrospective. Existing leases are broadly safe, so a lease effective from before
Although the 2026 Act is now law, the legislation banning UORRs is not yet in force.
The commencement date will be set
stronger as a result. There remains some ambiguity and uncertainty as to what the trigger date could catch though.
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