The government’s ban on upward-only rent hikes on commercial property could lead to landlords seeking rent increases via other means, a lawyer claimed.
Patrick Ansell, legal head of litigation at Taylor Rose law firm, suggested a ban could result in landlords using fixed periodic increases agreed at the start of the tenancy.
Ansell said: “Apart from the commercial implications for landlords and investors of a ban on upward-only rent hikes on commercial properties, the proposals could also have unintended consequences from a legal perspective.
“For example, it is possible that landlords would seek to increase rent through alternative mechanisms such as fixed periodic increases agreed at the start of the tenancy rather than upward-only rent reviews.
“It is also possible that landlords could be more inclined to insist on contracting out of the security of tenure provisions under the Landlord and Tenant Act 1954, to avoid being tied to a tenant for an indefinite period with the risk of declining rent once they are in occupation.”
The ban on upward-only rent reviews is contained in the English Devolution and Community Empowerment Bill (2025).
The bill is currently at the report stage in the House of Lords, having passed through all the readings in the Commons and two readings in the Lords.