Upwards-only rent reviews (UORRs) have long been a standard feature in commercial leases, guaranteeing landlords that rent will never fall, even if market conditions do.
But that could soon change. On 10 July 2025, the UK Government introduced the English Devolution and Community Empowerment Bill, which proposes a ban on UORRs in new and renewal commercial leases across England and Wales.
If the reform goes ahead, it could transform how landlords and tenants negotiate rent, something Denise Akutey, Commercial Property Solicitor at Bromleys, explores in more detail.
What Does the Government’s Proposal Include?
The Bill aims to make commercial leasing fairer and more reflective of market conditions. Key provisions include:
- Ban on UORRs in new and renewal leases, including those contracted out of the Landlord and Tenant Act 1954.
- Prohibition of minimum uplift clauses and collars, which previously prevented rent from dropping below a set level.
- Allowance for fixed or stepped rent increases and rent reviews that permit both upward and downward movement.
- Tenant-triggered rent reviews, ensuring landlords cannot delay reviews to maintain higher rents.
These changes are designed to support businesses, particularly SMEs and high street retailers, by preventing rents from becoming unsustainable during economic downturns.
Why Is This Happening Now?
The Government argues that UORRs “pit landlords against businesses and can make rents unaffordable and cause shops to shut.”
By banning these clauses, ministers hope to boost affordability, encourage investment, and revitalise local economies, including areas like Tameside and Greater Manchester, where Bromleys is based.
How Could This Impact Landlords and Tenants?
For Landlords
- Reduced income certainty, which may affect property valuations and lending security.
- Possible shift towards shorter leases or higher starting rents to offset risk.
- Increased complexity in lease structuring and potential disputes.
For Tenants
- Greater flexibility and negotiating power during renewals.
- Ability to benefit from market downturns, improving affordability.
- Risk that landlords may front-load rents to compensate for uncertainty.
Common Questions We’re Hearing
Q: Will existing leases be affected?
A: No. The ban applies only to new and renewal leases after the Bill becomes law.
Q: Can landlords still use index-linked reviews?
A:Yes, provided the rent can move both up and down.
Q: When will the changes take effect?
A: The Bill is still in Parliament, so timing depends on its passage and commencement date.
What Should Businesses in Greater Manchester Do Now?
If you’re negotiating a new lease or renewal, review your rent review clauses carefully.
Consider whether stepped rents or two-way reviews could work for your business. Landlords should assess how these reforms might impact valuations and income strategies.
Need Expert Advice?
Bromleys’ Commercial Property team can help you navigate these changes and protect your interests.
Call us on 0161 330 6821 or email bromleys@bromleys.co.uk to see how our expert commercial property team can help.