A Fairer Future: Why the End of Upward-Only Rent Reviews is Good News for Occupiers

The government's decision to ban upward-only rent reviews (UORRs) represents one of the most impactful reforms in commercial property for decades. For occupiers — particularly in the retail, leisure, convenience, fast food, and coffee sectors — this change opens the door to genuine rent reductions where market conditions warrant them.

As a rent review surveyor who works exclusively for tenants, I welcome this move. It removes a longstanding imbalance and puts control back in the hands of occupiers who have, for too long, been locked into inflated rents even as local markets softened around them.

1995: The Missed Opportunity

Upward-only clauses have been debated since the 1990s. In their influential 1995 report, Professors Crosby and Baum recognised the issues UORRs caused but stopped short of recommending a ban. The government took a cautious stance, fearing the knock-on effects for investment and development. As a result, little changed.

In the years since, we've seen many tenants—especially in secondary locations—paying above-market rents simply because there was no mechanism to bring them back down. The market evolved, but the leases didn't.

2025: Finally, a Reset

Now, rent reviews must reflect actual market rent — whether that means an increase, a standstill, or a decrease. It's a seismic shift that gives tenants a chance to realign rents with reality, particularly in sectors where rental values have drifted well beyond trading performance.

This is especially significant in:

• Fast food (e.g. Domino's, Subway, Greggs)

• Convenience grocery (e.g. Tesco Express, Sainsbury's Local)

• Coffee shops in secondary locations (e.g. Costa Coffee, Caffè Nero, Starbucks)

  
  

These occupiers often pay premium rents to secure key roadside or high-footfall units. Over time, those rents have become the benchmark for entire parades, even as neighbouring units sit empty or achieve lower rents. Until now, UORRs meant tenants had no ability to push back.

Rent Reviews Reclaimed — But Tenants Must Act

What is often overlooked is that many landlords avoided triggering rent reviews when they suspected values had dropped, especially in weaker town centres and secondary locations. Under upward-only clauses, they had no incentive to initiate a review they knew wouldn't lead to an increase.

Now, that changes. With downward reviews possible, tenants must proactively trigger reviews themselves, especially if there's credible evidence that local market rents have softened.

Take, for example, a Costa Coffee in a declining high street, still paying rent based on 2017 comparables. That tenant may now be in a position to reduce rent significantly — but only if the review is activated, properly evidenced, and negotiated.

This reform makes tenant-side rent review advice more critical than ever.

A Surge in Surveyor Activity

The ban doesn't just benefit occupiers — it revitalises the rent review process. What was once a fairly one-sided affair is now a genuine negotiation grounded in evidence and local market knowledge.

For surveyors acting for tenants, this means more meaningful instructions, more scope to add value, and a greater need for strategic, well-argued positions.

Personally, I've already seen a spike in interest from occupiers who suspect they’re over-rented but previously felt powerless to challenge it. The ability to negotiate rent downwards fundamentally changes their approach to lease management.

Rethinking Risk, Unlocking Opportunity

This isn't bad news for landlords either. In the long run, allowing rents to flex with the market helps reduce voids, makes leasing more sustainable, and encourages longer-term occupation. In a post-COVID world, rigid lease structures have become a barrier to progress. This reform removes that obstacle.

Next Steps for Occupiers

If you have a rent review under the new regime when it becomes statute, now is the time to revisit your property strategy. There will be a window of opportunity to secure a rent reduction, but success will depend on timing, preparation, and property market evidence.

Beware of time-of-the-essence clauses in the lease that may trip you up.