<strong>The Government has proposed a ban on upward-only rent reviews in commercial leases and put options.</strong>

The <a href="https://bills.parliament.uk/bills/4002" target="_blank" rel="noopener">English Devolution and Community Empowerment Bill</a> (the <strong>Bill</strong>) had its first reading in the House of Commons on 10 July 2025. Unexpectedly and without consultation, the Bill includes a proposal to prohibit upward-only rent reviews in commercial leases.

As currently drafted, the ban would apply to both leases contracted out of the security of tenure provisions under the Landlord and Tenant Act 1954 and those that benefit from such protection. In addition, the Bill would give tenants the right to trigger a rent review.

If enacted, the ban would apply to all forms of rent review whether based on open market value, indexation, or turnover. However, the legislation is not intended to have retrospective effect.

Similar provisions will apply to setting the initial rent for a lease granted pursuant to a put option where a tenant can be compelled to take a lease. Notably, this would not apply where the tenant holds an option to renew.