On 22 July 2025, the UK Government confirmed a significant change to commercial leasing laws as part of the English Devolution and Community Empowerment Bill. The legislation will ban upward-only rent review clauses in all new commercial leases and lease renewals under the Landlord & Tenant Act 1954.
This means landlords will no longer be able to include provisions that restrict rent reviews to upward-only movements, regardless of market conditions.
This reform is particularly relevant to Birmingham, where the commercial property market has a diverse mix of retail, office, and industrial tenants. Many local businesses have long faced challenges tied to inflexible rent structures, especially during economic downturns. The new law is expected to bring greater fairness and transparency to lease negotiations, allowing rents to reflect current market values more accurately.
For businesses across Birmingham and the wider West Midlands region, especially independent retailers and hospitality operators, the ban could provide much-needed relief. These sectors have been under increasing pressure from rising operating costs and business rates. With rent now able to adjust both upwards and downwards, tenants may find themselves in a stronger position to negotiate terms that better reflect actual trading conditions.
However, while the reform has the potential to benefit tenants, there are concerns landlords may respond by increasing initial rents, shortening lease lengths, or tying rent to fixed indexation to maintain financial certainty. For occupiers, this shift underscores the importance of understanding lease terms and negotiating from a position of knowledge and strength.
Phil Bartleet, Head of Office at Bradley Hall Birmingham, commented: “This is a turning point in commercial leasing. For Birmingham businesses, especially those in long-term premises, it opens up new opportunities to re-evaluate rental commitments. But it’s important to remember that landlords will be looking for alternative ways to protect income. At Bradley Hall, we help clients navigate this landscape with clear advice, strategic negotiation, and a deep understanding of the local market.”
Bradley Hall’s Birmingham office covers not only the city centre but the entire West Midlands, including key commercial hubs such as Solihull, Coventry, Wolverhampton, Walsall, Dudley, and Sutton Coldfield. The team supports clients across all sectors, offering lease audits to assess current terms, advice on structuring rent reviews in line with the new rules, and expert support during lease negotiations. With deep-rooted knowledge of key local markets such as Brindleyplace, Snowhill, and the Jewellery Quarter, Bradley Hall provides tailored insights for both occupiers and landlords.
For businesses approaching lease renewal or considering new premises, timing and strategy will be key. Whether deciding to complete before the new rules come into force or preparing to negotiate under the updated legislation, working with an experienced property advisor is essential.
The upcoming changes represent a major evolution in how commercial rents are reviewed in Birmingham and across the UK. With expert guidance from Bradley Hall, local businesses and property owners can not only stay compliant but also make smarter, more informed decisions in a shifting market.
Find out how Bradley Hall can help here: https://www.bradleyhall.co.uk/branches/birmingham/
