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On 10 July 2025, the government introduced a bill, the English Devolution and Community Empowerment Bill, which unexpectedly proposes a ban on upwards-only rent reviews (UORR). This represents a significant shift in the market, and will reduce certainty of investment for landlords, investors and lenders.

Existing leases will be exempt, but renewals will not be. In addition to market UORRs, the ban will apply to any rent review where rent can vary but not fall, and will catch rent reviews based on inflation or turnover too. Instead, rent reviews must reflect the actual calculated reference, meaning the rent can fall during weaker economic times.

The bill is still at early stages and the lack of industry consultation means that significant amendments may be made. However the market hates uncertainty, so landlords and investors would be well-advised to start thinking about alternative lease structures to manage this risk such as shorter terms and fixed or stepped rents .

The Bill will ban UORR clauses in new commercial leases in England and Wales. Commercial leases include sectors such as high street businesses, offices and manufacturing. Some very limited areas such as agricultural leases will be exempt. The ban will also apply to renewal leases where the tenant has security of tenure under Part II the Landlord and Tenant Act 1954. The ban aims to make commercial leasing fairer for tenants, ensure high street rents are set more efficiently, and stimulate economic growth.

https://www.gov.uk/government/publications/english-devolution-and-community-empowerment-bill-guidance/english-devolution-and-community-empowerment-bill-guidance

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