A summary of key legal reforms and judicial developments expected in 2026.
Business tenancies: the right to renew
Part 2 of the Landlord and Tenant Act 1954 gives business tenants the right to renew their tenancies when they would otherwise come to an end. The law is more than 70 years old and has not been updated to reflect modern commercial practices. The Law Commission is thus conducting a wide review of business tenants' statutory right to renew their tenancies. In 2025, in response to the issues raised in their first consultation on Part 2 of the Act, the Law Commission concluded that the existing "contracting out" model, by which business tenants have the right to renew their lease unless they "contract out" of the 1954 Act security of tenure provisions, should be retained as it strikes a good balance between landlords and tenants. However, there are technical details of the Act that could be improved, and the Law Commission will shortly publish its second consultation on Part 2 of the Act that will focus on these technical details and invite the public to respond to the issues and questions raised. We will report further on this once the second consultation paper has been published.
Ban on upwards-only rent review
The English Devolution and Community Empowerment Bill, which proposes banning upwards-only rent reviews (UORRs) in most new and renewed business tenancies in England and Wales, has reached the latter stages of the Parliamentary process and could be enacted this summer, although the provisions relating to the ban on UORRs are likely to take effect later in 2027/2028.
The Bill, as currently drafted, is not retrospective. Thus, the ban on UORRs would only apply to leases entered into or renewed after the relevant provisions take effect. However, as the Bill is debated and amendments are tabled, there may be some retrospective elements introduced. Recently, Baroness Taylor tabled an amendment to the Bill that would bring renewal leases granted pursuant to contractual option agreements entered into on or after the day on which she tabled the amendment (17 March 2026) within the scope of the proposed ban. You can read more about the Bill and recently tabled amendment here.
We will report further on this as revised versions of the Bill are published and debated further.
Renters' Rights Act 2025
We are fast approaching 1 May 2026, when most of the changes introduced by the Renters' Rights Act 2025 will take effect, fundamentally changing the way in which the private rented sector operates. There has been a flurry of government guidance and regulations published during the past weeks to assist landlords and tenants to prepare for the forthcoming changes. This includes publication of the official Information Sheet, that landlords must serve (on pre-1 May 2026 tenants with written tenancy agreements) prior to 31 May 2026.
We explain more detail on the changes to be introduced by the Renters' Rights Act 2025 in our latest edition of Property Shapers - Real Insights: What's in store for 2026, and our Renters' Rights Act 2025 Hub contains a lot more information, podcasts, guides and articles on the Act.
Upcoming landlord insurance commission appeal
In the case of London Trocadero (2015) LLP v Picturehouse Cinemas Ltd and other companies [2025] EWHC 1247 (Ch), the court ordered the landlord of London Trocadero to repay unlawful insurance commissions it had been charging the tenant as part of the insurance rent (as reported in our article: London Trocadero v Picturehouse Cinemas: High Court clarifies limits on insurance premium recovery under commercial leases last June). The case drew attention to what is understood to be a widespread practice across the commercial property sector, prompting many landlords and tenants to review their own lease portfolios and take advice on how their insurance rent provisions are worded. The landlord has appealed, and the appeal is listed for hearing on 3 June 2026. We will report on the outcome in a future edition.