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UK proposed ban on upwards only rent reviews: will there be a retrospective element?

31 March 2026

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In July last year, the government published the English Devolution and Community Empowerment Bill, which contains provisions proposing a ban on upwards only rent reviews in new leases. You can read the article that we published at the time here: UK Real Estate: An end to upwards-only rent reviews?

Since then, the Bill has been working its way through the Parliamentary process, with few substantive amendments being made to the provisions relating to the proposed ban. However, the latest list of amendments to the Bill introduces a potential retrospective effect.

What is the amendment?

The Labour peer sponsoring the Bill in the House of Lords has proposed that in relation to “tenancy renewal arrangements” the ban on upwards only rent reviews will have effect from 17 March 2026, as opposed to the date on which the Bill (once enacted) comes into force.

In practice, this means that the prohibition on upwards only rent reviews would apply to the rent payable under a new lease (both on a day one rent review, and subsequent reviews during the term) where that lease is granted pursuant to an option contained in a lease granted after 17 March 2026. If this amendment remains unopposed, the form of Bill that receives Royal Assent in due course will contain this retrospective provision.

What does this mean for ongoing negotiations?

Even though the Bill is not yet in force, the proposed amendment impacts live negotiations. Any landlord currently negotiating leases that include an option for the tenant to take a new lease at the end of the term should decide now how the rent should be determined under the option lease. If the Bill receives Royal Assent in the form of the current tabled amendments, an option granted now for a lease that contains an upwards only rent review (whether that review is on day one, or during its term) will be prohibited, and therefore alternative models should be considered.

What happens next?

The Bill will next pass to its third reading in the House of Lords, after which it will enter the final stages of its passage through Parliament, with the House of Commons considering the amendments made by the Lords. Royal Assent will follow shortly after that process is concluded.

We will continue to track the progress of the Bill and in the meantime do reach out to your usual Hogan Lovells contacts to discuss this or any other aspect of the proposed legislation.

Authored by Stella Bliss, Ingrid Stables, and Lucy Redman.