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.
Read the full article here
Business tenancies: Why the right to renew matters now The Law Commission’s second consultation on business tenancies is an important moment for landlords, occupiers and property professionals. Part II of the Landlord and Tenant Act 1954 underpins the right of many business tenants to renew their leases, but the commercial property market has changed significantly since the legislation was first introduced. This consultation is therefore more than a technical legal review; it is an opportunity to help shape a framework that better reflects how commercial property is owned, occupied and managed today.
For our clients, the consultation
particularly where the reforms could
raises practical questions about lease
influence renewal strategy, short-
strategy, flexibility, risk, cost and future-
term lettings, contracting out, rental
proofing property portfolios. Below,
structures or redevelopment plans.
we summarise the key points, explain
Link to consultation questions
why they matter, and highlight where landlords, tenants and advisers may
The Law Commission will consider the
wish to engage before the consultation
responses before publishing its final
closes.
report and recommendations. While it will ultimately be for Government to
What has the Law Commission provisionally concluded? 1.
2.
3.
decide whether and how to implement any reforms, this consultation is a
The current security of tenure
meaningful chance for the market to
model should remain, including the
explain what works, what does not,
existing contracting-out process
and where the current regime creates
The Act’s duration-based exclusion
unnecessary cost, delay or uncertainty.
threshold should increase from
That matters because lease renewal
six months, with the second
rights affect real commercial decisions:
consultation expected to consider
whether a business can remain in its
a two-year threshold
premises, how quickly space can be
No further changes should be
re-let or redeveloped, how risk is priced,
made to the Act’s scope
and how much certainty both parties have when negotiating new terms.
The consultation period runs until 16 September 2026. This gives landlords, tenants, representative bodies, advisers and other interested parties a direct opportunity to influence the future operation of security of tenure in
It has been around 20 years since the last significant changes were made to the Act, and more than 70 years since security of tenure was introduced following the Second World War.
England and Wales. Clients who may be affected should
Read the full article here
review the proposals carefully and consider whether to respond,
Don’t hesitate to contact a member of our lease advisory team: Rupert Collis
Sam Boothby
Head of Lease Advisory
London & South East
07966 481501
07483 701831
rupert.collis@fishergerman.co.uk
sam.boothby@fishergerman.co.uk
Richard Beaumont
Jonathan Butler
London & South East
North East
07811 790180
07580 323813
richard.beaumont@fishergerman.co.uk
jonathan.butler@fishergerman.co.uk
fishergerman.co.uk