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The law will not affect existing leases but will prohibit the introduction of upwards-only clauses in new leases once the commencement date is confirmed by Parliament, likely in 2027. We will see the effect of this across the property market with consequences for landlords, tenants, investors and lenders.</p>\n<p>At Strettons, we are pleased to advise our clients on the evolving nature of commercial rent reviews. The Act will change the way commercial leases are agreed and negotiated. Our dedicated Lease Advisory team will be happy to advise and act on your commercial leases. For more information, find our FAQ's below.</p>\n<p>&nbsp;</p>","Content_and_Image":[],"Show_Subscribe_Updates":true,"Accordion_Component":[{"Title":"What is an upwards only rent review?","Content":"<p>The mechanism is common in longer commercial leases, where it allows the rent to either increase or stay the same, but never decrease. Typically, the review would occur on a 3 to 5 year pattern.</p>","Read_More_ID":null,"Image":null},{"Title":"Will the Act be retrospective to current leases?","Content":"<p>The ban will not be retrospective and will come into force sometime in 2027.</p>","Read_More_ID":null,"Image":null},{"Title":"Will this affect lease renewals coming up in 6-12 months' time?","Content":"<p>As the commencement date has not been confirmed, renewals can take place on the current upwards only provision. As Notices can be served 12 months prior to the lease renewal, landlord&rsquo;s may seek to enact the renewal at the earliest opportunity.</p>","Read_More_ID":null,"Image":null},{"Title":"Will the ban apply to leases outside the security of tenure of the Landlord and Tenant Act","Content":"<p>Yes, the ban will apply to leases in or outside the Act.</p>","Read_More_ID":null,"Image":null},{"Title":"Will a fixed or stepped increase be permitted?","Content":"<p>Yes, the Act allows for these mechanisms.</p>","Read_More_ID":null,"Image":null},{"Title":"Are RPI or CPI-H rent reviews covered by the Act?","Content":"<p>The Act still allows for RPI or CPI-H linked reviews as it is possible for the rent to decrease, although it is unlikely.</p>","Read_More_ID":null,"Image":null},{"Title":"If there is an upwards-downwards rent review in my lease, what should I do?","Content":"<p>The rent review will need careful consideration prior to the rent review. Landlords will no longer be able to ignore a review when rents are falling. Moreover, the landlord-tenant relationship may become strained due to the increased jeopardy of the rent review.&nbsp;</p>","Read_More_ID":null,"Image":null},{"Title":"What are the potential ramifications of the Act?","Content":"<p>We believe the ban is likely to influence term lengths, with shorter lease leading to more frequent lease renewals. Furthermore, we expect tenants will look to activate the rent review sooner if they believe the rent is decreasing, and in areas of conflicting evidence, we expect to see more reviews going to Third-Party. We will also see more RPI or CPI-H linked rent reviews in leases. In the short term we also expect rents to be higher on properties with upwards-downwards reviews by comparison to rents on properties where the lease has upwards only rent reviews.</p>","Read_More_ID":null,"Image":null},{"Title":"What about agreements to review?","Content":"<p>Leases from 17 March 2026 onwards which includes a renewal option or requires the tenant to enter a new lease, will be subject to the upwards-only review ban for both initial and future reviews in the option lease.</p>","Read_More_ID":null,"Image":null},{"Title":"What will happen to leases that are not 'time of the essence' and haven't been documented from a landlord perspective?","Content":"<p>In this case, as the review can be retrospectively activated, if the assessed market rent highlights a decrease in the rent, it would be prudent to document the review as soon as possible to negate the rent continue to fall.</p>","Read_More_ID":null,"Image":null},{"Title":"Will ‘cap and collar’ on an RPI or CPI-H rent 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