By Paul Andrew, Equity Director, Bradley Hall Yorkshire

For decades, upwards only rent reviews have been a defining feature of the UK commercial property market. They have provided landlords with certainty of income, supported lending decisions and underpinned investment values across all sectors.

That position is now being challenged.

The Government’s proposed ban on upwards only rent reviews, currently progressing through Parliament as part of wider leasehold reform, represents one of the most significant changes to commercial leasing in a generation. With implementation anticipated in 2026 or 2027, the direction of travel is becoming increasingly clear and the implications are already starting to shape market behaviour.

At its core, the reform is intended to create a more balanced relationship between landlord and occupier. Historically, rent review clauses have ensured that rents could only ever increase or remain static, even in weaker market conditions. The proposed changes would allow rents to move in line with the market in either direction, introducing a level of flexibility that has not previously existed in most commercial leases.

While this may appear straightforward in principle, the reality is far more nuanced. The removal of upwards only provisions shifts the balance of risk across the market. For landlords and investors, the certainty that has long been associated with rental income begins to soften. Assumptions around growth and security of income will need to be reconsidered, which in turn has potential implications for asset values and lending structures.

For occupiers, there is an opportunity to secure lease terms that better reflect trading conditions, particularly in sectors that are more exposed to economic volatility. However, this increased flexibility is unlikely to come without cost. It is reasonable to expect that landlords will look to offset risk through higher initial rents, shorter lease lengths or more complex lease arrangements.

What we are seeing already is the early evolution of alternative rent review mechanisms. Index-linked reviews, turnover-based rents and fixed uplifts agreed at the outset are becoming more prominent in discussions. These approaches aim to strike a balance between flexibility and income security, but they also introduce a greater degree of complexity into negotiations.

As a result, rent reviews are moving away from being a standard clause within a lease and are instead becoming a central point of strategy for both parties. The ability to interpret market evidence, understand sector trends and negotiate effectively will be more important than ever.

This shift is likely to lead to a significant increase in demand for professional advice. Negotiations will become more detailed, more evidence-driven and, in many cases, more contentious. Both landlords and tenants will need to take a more considered approach, not only at the point of review but at the outset of lease negotiations and throughout the lifecycle of their property interests.

For surveyors, this presents both a challenge and an opportunity. The volume of work associated with rent reviews and lease advisory is expected to grow as the market adjusts. More importantly, the role of the surveyor becomes increasingly strategic, helping clients to navigate uncertainty and make informed decisions in a changing landscape.

Although the legislation is still working its way through Parliament, there is a clear case for acting now. Reviewing existing lease portfolios, understanding exposure to potential change and considering how future leases are structured will all be important steps. Waiting for the reforms to be finalised risks leaving both landlords and occupiers on the back foot.

At Bradley Hall, we are already working closely with clients across Yorkshire and beyond to prepare for these changes. This includes advising on rent review negotiations, restructuring lease terms and providing valuation and portfolio advice that reflects the evolving market.

What is clear is that this is not simply a technical adjustment to lease wording. It represents a broader shift in how commercial property is valued, negotiated and managed. Those who engage early and take a proactive approach will be best placed to manage risk and identify opportunity as the market evolves.

In a market that has long relied on certainty, the introduction of greater flexibility will inevitably bring complexity. Navigating that complexity successfully will depend on insight, experience and the ability to adapt.

For further support, contact Paul and the team on 0113 223 4868 or email [email protected]