The ban on upwards only rent reviews: Five questions landlord and tenants are asking right now
The English Devolution and Community Empowerment Act proposes a ban on upwards only rent review clauses, and this Act received Royal Assent on 29 April 2026. Despite receiving Royal assent, significant ambiguity remains and the practical reality of what happens next is far from clear. The lack of industry consultation has been heavily criticised by the British Property Federation (BPF). Avison Young are advising both landlords and tenants throughout the United Kingdom, and a list of commonly asked questions is seen below.
When will the ban on upwards only rent reviews come into effect?
The UK Government have not published an official date that a ban on upwards only rent reviews will take effect. A commencement date is expected to be set by secondary legislation, with the market expecting no earlier than 2027.
Will this ban be on existing leases or new leases?
This ban will only be applied to new leases with one exception. This exception is the renewal of a lease where the renewal is under an option dated on or after 17 March 2026.
Is this a blanket ban across all sectors?
Yes – the ban on upwards only rent reviews is across all sectors. This is a controversial area with the market suggesting that the removal of an upwards only clause could deter investment across all property classes. However, the ban is expected to have a different impact across each sector. There is expectation within the market that retail properties will be more greatly impacted by this ban than, for example, industrial properties where growth has been strong in recent years.
How will the market respond to this ban?
This is an unknown, however there are several expectations within the market to consider. One likelihood is that leases may become shorter, with no rent review clause at all. It is expected that landlords will consider ways of protecting their income, in the form of index-linked reviews and stepped rents. In the immediate future, tenants may delay agreeing new leases to benefit from the ban.
Is there an overreaction to the ban?
Whilst there is no evidence from the United Kingdom, Ireland introduced a ban on upwards only rent reviews for new leases from 1 March 2010. Avison Young is active in the Irish market, and colleagues suggest the initial market reaction was uncertainty, much like what is currently witnessed in the United Kingdom. However, the uncertainty feared was an overreaction and the market adjusted itself.
Summary
There are some points of clarity and others of uncertainty for landlords and tenants to consider. What can be confirmed now is that this ban will be across all sectors, therefore impacting all landlords and tenants. In addition, this ban will primarily be on new leases. However, there is no clarity yet on when this ban will be introduced, and the anticipated reaction to this ban, which are both key considerations for landlords and tenants.
Avison Young are actively advising clients and monitoring updates in legislation to ensure our clients are best informed.
