Upwards-only rent reviews: what will the 2026 changes mean for commercial property?

The days of assuming a commercial rent can only move upwards at review are coming to an end.

The English Devolution and Community Empowerment Act 2026 has received Royal Assent and includes provisions to prevent upwards-only rent review clauses being used in affected commercial leases in England and Wales. However, the rent review provisions have not yet come into force, so there is still some way to go before the practical impact is felt across the market.

Under an upwards-only rent review, the rent can increase or remain unchanged at review, but cannot fall even if market rents have declined. Under the new regime, where a rent review mechanism produces a lower market rent, provisions preventing that reduction will generally have no effect.

For occupiers, this could provide greater protection when market conditions weaken. A business occupying premises where market rents have fallen could, depending on the lease and the review mechanism, see its occupational costs reduce rather than remaining fixed at the previous level.

For landlords, the change introduces a different consideration. Future rental income may be less predictable, and investors will need to consider the possibility of downward movement when assessing income, value and longer-term investment returns.

It may also influence the way new leases are negotiated. If landlords can no longer rely on an upwards-only review, the balance between initial rent, rent-free periods, lease length and other incentives could become increasingly important.

For both sides of the market, the message is therefore less about whether the changes are "good" or "bad" and more about understanding how they could affect individual leases.

For landlords, it may be worth reviewing upcoming lease events and considering how changes to rent review provisions could affect future income.

For occupiers, upcoming lease renewals could provide an opportunity to consider whether the changing rules affect their negotiating position.

The legislation is detailed and there are important transitional provisions, so the precise impact will depend on the terms of the lease and when it was granted or renewed.

At White Commercial, we will be keeping an eye on how the changes develop and what they mean for landlords and occupiers across the commercial property market.