What Could the Proposed Ban on Upwards-Only Rent Reviews Mean for Commercial Property Owners?
- 3 hours ago
- 2 min read
The government's proposed ban on upwards-only rent review clauses has sparked significant debate across the commercial property sector. A longstanding feature of commercial leases, upwards-only rent reviews have influenced investment values, funding arrangements and leasing strategies for decades.
The proposed reforms are intended to give tenants greater flexibility by allowing rents to decrease at review. However, many landlords, investors and property professionals are questioning what the changes could mean in practice and whether they will achieve the intended policy objectives.
Our Head of Legal Training, Richard Snape, explored the ban on upwards-only rent reviews during our recent webinar on the future of the Landlord and Tenant Act 1954, which brought together property professionals to discuss the potential implications for landlords, tenants and investors.
Building on the themes explored during the webinar, Richard has now shared his insights in an article for Estates Gazette.
"If the ban comes into force as anticipated, the real story over the next few years will not be whether rents can go down. It will be how creatively the market rewrites the rules around them."
In the article, Richard examines why the proposal emerged with relatively little warning and what it could mean for the commercial property market. Answering questions such as:
If UORRs (upwards-only rent reviews) disappear, what replaces them?
If landlords lose the certainty provided by UORRs, how will they respond?
Has the market been listening to the wrong debate?
Will the high street actually benefit?
Richard explains that the key issue may not simply be whether rents can fall at review, but how the commercial property market adapts to a potentially significant change in leasing practice.
About Richard Snape
Head of Legal Training, Richard Snape, has a national reputation for lecturing on property law topics. He leads our CPD programme and delivers bespoke in-house lectures for clients, including institutions, corporates, and developers. Richard is praised for explaining complex property concepts in a clear, engaging, and tailored way that meets the needs of his audience.
