If you’re looking at commercial property in the UK right now, you’re stepping into a market that’s changing faster than it has in years. The government has proposed banning upwards-only rent reviews in new leases, the RICS has updated its service charge code, and a new business rates revaluation is coming in April 2026. These aren’t minor tweaks — they reshape what a fair deal looks like. Here’s what you actually need to know.
I’ve been covering commercial property for a while now, and what strikes me most is how many tenants sign leases without realising how much leverage they actually have. The rules are shifting in your favour — but only if you know what to ask for. Whether you’re renting your first office, a retail unit, or industrial space, the decisions you make in the next few months could lock you into terms that look very different from what’s available a year from now. That’s why timing matters as much as location. If you want a broader overview of the process, our guide to renting commercial property in the UK covers the full journey from search to signing.
What the security of tenure changes mean for your lease
Most business tenants in England and Wales have something called security of tenure under Part 2 of the Landlord and Tenant Act 1954. In plain terms, that means you have the right to stay in the property when the lease ends, and the right to ask for a new lease on broadly similar terms. Landlords can only kick you out on specific grounds set out in the Act. It’s a powerful protection — but it’s one that many tenants give up without realising it.
The Law Commission has provisionally concluded that the minimum six-month term for protected tenancies should be increased, and its second consultation is likely to propose raising that to a minimum of two years. If you’re signing a short lease now, you need to understand whether you’re contracting out of these protections. My advice: never sign a lease that contracts out without first running it past a solicitor. A tenant landlord lawyer can tell you exactly what you’re giving up and whether the trade-off is worth it.
Why the ban on upwards-only rent reviews changes everything
Upwards-only rent reviews have been a standard feature of UK commercial leases for decades. They mean your rent can only go up, never down, regardless of market conditions. The government’s English Devolution and Community Empowerment Bill, published in July 2025, proposes making them unenforceable in new and renewal commercial leases. If enacted — expected late 2026 or early 2027 — this would be one of the biggest shifts in landlord-tenant power dynamics I’ve seen.
Here’s the catch: the ban applies to new leases and lease renewals, not existing ones. So if you sign a 10-year lease today with an upwards-only review clause, you could be stuck with it for the duration. The property industry outlook from VWV suggests this will likely lead to shorter, contracted-out leases and a move toward longer-term valuations. What I’d do in your position: if you’re negotiating a lease now, push for a rent review clause that allows downward movement too, or at least cap the increase. Landlords know the law is coming — use that as leverage.
One group this affects differently is retail tenants. According to VWV, retail leases tend to be shorter and less likely to contain rent review clauses anyway, so the ban may have less direct impact there. Office and industrial tenants, who typically sign longer leases with regular reviews, stand to benefit most. If you’re in either camp, now is the time to understand what your lease says about rent reviews — and what it doesn’t say that it should.
Where tenants get tripped up on service charges and hidden costs
The biggest financial surprise for most commercial tenants isn’t the rent — it’s the service charge. The updated RICS Professional Standard, Service charges in commercial property (2nd edition), took effect from 31 December 2025. It’s compulsory for all RICS-accredited professionals, but here’s the important bit: it doesn’t override your lease terms and isn’t legally binding. It sets industry benchmarks and is a vital reference point for negotiations and disputes.
What that means in practice: if your landlord’s service charge seems high or poorly explained, the RICS code is your first port of call. It tells you what good practice looks like — what should be included, what shouldn’t, and how costs should be apportioned. I’ve seen tenants pay for things like head office management fees or marketing costs that weren’t clearly linked to the building they occupied. The code helps you push back.
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| Reform | Status | Impact on tenants |
|---|---|---|
| RICS service charge code (2nd edition) | In force from 31 Dec 2025 | Sets benchmarks for cost transparency and dispute resolution |
| Ban on upwards-only rent reviews | Proposed in July 2025 Bill; expected law late 2026/2027 | Applies to new leases and renewals; existing leases unaffected |
| Business rates revaluation | Takes effect 1 April 2026 | Lower multipliers for retail/hospitality/leisure under £500k RV |
| EPC validity and enforcement | Expected second half of 2026 | Shorter certificate life; must maintain EPC throughout tenancy |
Not checking the business rates multiplier
From April 2026, England adopts a revised business rates multiplier structure. Retail, hospitality and leisure properties with a rateable value below £500,000 will benefit from lower multipliers. Properties at £500,000 or more fall under a higher “high-value” multiplier. If you’re renting a larger space, your rates bill could jump significantly. Check the rateable value before you sign — and factor it into your total occupancy cost, not just the rent.
Ignoring EPC requirements until it’s too late
Following the government’s consultation on reforming the Energy Performance of Buildings framework, significant updates are expected in the second half of 2026. Shorter EPC validity periods are likely, along with a requirement for landlords to maintain a valid EPC throughout the tenancy — not just at grant or renewal. If the property’s EPC lapses mid-lease, you could face enforcement action or higher energy costs. Ask for the current EPC upfront and check when it expires.
Overlooking the Assets of Community Value changes
The same Bill that bans upwards-only rent reviews also proposes widening the definition of community value to include properties that contribute to economic wellbeing. A new “sporting asset of community value” category would capture outdoor sports grounds. If you’re renting a community-focused property, these changes could affect your ability to sell or assign the lease. It’s a niche issue, but one that could catch you out if you’re in the hospitality or leisure sector.
How to negotiate a commercial lease in the current market
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Push for a rent review clause that works both ways
With the ban on upwards-only reviews on the horizon, landlords know the game is changing. Use that. Ask for a rent review clause that allows the rent to go down as well as up, or at least caps annual increases to a fixed percentage or index. If the landlord pushes back, point out that the law is likely to ban upwards-only clauses soon anyway — you’re just asking for a future-proofed lease. If you need professional backup, a real estate lawyer can review the clause language before you sign.
Get the service charge budget in writing before you sign
Don’t accept a vague promise that service charges will be “reasonable.” Ask for a detailed budget for the first year, including what’s covered and how costs are apportioned between tenants. The RICS code is your benchmark — if the landlord’s proposal doesn’t match it, ask why. I’d also recommend a clause that gives you the right to audit the service charge accounts annually. That alone keeps landlords honest.
Check the EPC and plan for the 2026 changes
If the property has a low EPC rating, you could face higher energy costs and potential compliance issues when the rules tighten. Ask the landlord whether they plan to upgrade the building before the new requirements take effect. If they don’t, factor the cost of improvements — or the risk of penalties — into your rent negotiation. A guide to EPC requirements for commercial property can help you understand what ratings are acceptable and what the new rules will demand.
Understand the business rates impact before you budget
The April 2026 revaluation updates rateable values based on rental values as at 1 April 2024. If your rent has changed significantly since then, your rates bill might not match your actual costs. Use the government’s business rates calculator to estimate your bill under the new multipliers. If the property falls into the high-value bracket (£500,000+ RV), negotiate a rent reduction to offset the higher rates — or walk away if the total cost doesn’t stack up.
Frequently asked questions
Can I still sign a lease with an upwards-only rent review before the ban takes effect? ▾
Does the RICS service charge code apply to my lease if my landlord isn’t RICS-accredited? ▾
What happens if my landlord doesn’t maintain a valid EPC during my tenancy? ▾
Will the business rates revaluation affect my rent? ▾
What’s the minimum lease term I should consider given the upcoming changes? ▾
The commercial property market is in the middle of a genuine reset. The ban on upwards-only rent reviews, the new service charge code, and the business rates revaluation all point in one direction: more transparency and more tenant power. But none of it helps you if you’re already locked into a lease that predates the changes. My advice is simple: negotiate every clause as if the rules have already changed, because they will. If this was useful, you might also want to read Beyond the Rent: Unmasking the Hidden Costs of UK Commercial Leases.
Sources and Further Reading
Negotiating Power Plays: Winning Commercial Rent Concessions in the UK Market — Practical tactics for getting better terms when you’re at the negotiating table.
Understanding Tenant Service Charge Insurance in the UK — A closer look at what your service charge actually covers and how to challenge unfair costs.
UK Real Estate Sector 2026 and Beyond. Charles Russell Speechlys, 2025.
Commercial Property Law Changes Coming in 2026. So Legal, 2025.
2026 Property Industry Outlook: Key Reforms and Market Impact. VWV, 2025.
