The English Devolution and Community Empowerment Act 2026 received Royal Assent on 29 April 2026 and introduces a significant change to the commercial property landscape: a ban on upwards-only rent review (UORR) clauses in commercial leases.

For decades, upwards-only rent reviews have been a standard feature of many commercial leases, ensuring that rent could increase at review but never decrease, even where market conditions changed. The new legislation signals a major shift in the balance between landlords and tenants and is expected to have a considerable impact on future lease negotiations and renewals.

What does the new legislation do?

The Act bans upwards-only rent review clauses in commercial leases entered on or after 17 March 2026.

While existing leases will not immediately be affected, the ban is expected to apply when those leases are renewed. This means landlords and tenants alike should begin reviewing their current arrangements and considering how future renewals may be impacted.

Importantly, the ban applies regardless of whether:

  • the lease has been contracted out of the Landlord and Tenant Act 1954; or
  • the tenant remains in occupation of the premises.

The legislation therefore has broad application across the commercial property sector.

What types of rent review are still permitted?

The Act does not prevent all forms of rent increase. Alternative rent review mechanisms are still expected to remain lawful, including:

  • fixed stepped rent increases;
  • index-linked rent reviews; and
  • genuine upwards and downwards market rent reviews.

As a result, landlords may need to consider alternative structures when drafting new commercial leases, while tenants may have greater scope to negotiate more flexible review provisions.

When will the changes take effect?

  • At present, there remains some uncertainty as to when the legislation will come fully into force. It is considered unlikely that the changes will take effect during 2026, but businesses should not delay in preparing.

Both landlords and tenants should now begin examining their lease portfolios to identify any upwards-only rent review provisions and assess how the new rules may affect ongoing negotiations, renewals, acquisitions and long-term property strategies.

What should landlords and tenants do now?

For landlords

Landlords should:

  • review existing lease arrangements;
  • consider how future lease renewals may be affected;
  • explore alternative rent review mechanisms; and
  • assess the potential financial implications for investment properties and income forecasting.

For tenants

Tenants should:

  • identify leases that may be due for renewal after April 2026;
  • consider whether the new rules could improve negotiating positions; and
  • seek advice before entering into new lease agreements or renewal negotiations.

How Gepp Solicitors can help

Gepp Solicitors can advise both commercial landlords and tenants on how the new legislation may affect them and help prepare for the forthcoming changes to commercial lease arrangements.

To discuss your situation with our commercial property team, call 01245 228115 or email commercialenq@gepp.co.uk.