Business rates
The business rates changes announced in the November 2025 budget came into force on 1 April 2026. A new 5-multiplier structure now applies, with permanently lower multipliers for qualifying retail, hospitality and leisure properties and a higher multiplier of 50.8p for all premises with a rateable value of £500,000 or more. The previous temporary RHL relief ended on 31 March 2026. However, a nationwide revaluation of business premises has taken effect in April 2026, based on values as they stood at April 2024. Many businesses will see significant increases in their rateable values, and therefore a sharp increase in their rates bills, despite the headline-grabbing lower multipliers. Business ratepayers should be prepared to lodge valuation appeals if they believe their new rateable value is inaccurate. Transitional relief is available to cap large bill increases.
Upwards-only rent reviews to be banned
The English Devolution and Community Empowerment Act 2026 received Royal Assent on 29 April 2026. It bans upwards-only rent review clauses in new and renewal commercial leases. Existing leases are not affected, but any options to renew entered into on or after 17 March 2026 will be caught. The ban is not expected to come into force until 2027 or 2028 at the earliest, pending commencement regulations. Alternative mechanisms — including fixed stepped increases and index-linked reviews (allowing rent to move up or down) — remain permitted. If an existing (pre-commencement) lease is renewed in the future, then the ban will apply to the renewal lease. For more information, please see our article here.
Landlords' insurance commissions – appeal settled
A High Court decision in 2025 cast doubt on whether commercial landlords can charge tenants for the commission element of an insurance premium. There was no issue over the commission payable to the landlord's broker, but could the tenant be forced to pay a separate commission that would go into the landlord's own pocket? No, said the High Court.
The landlord appealed but the parties reached an undisclosed settlement before the Court of Appeal hearing took place. As a result, the High Court's findings remain the only court ruling on the point. Depending on this ruling, many business tenants may have grounds to review their historic insurance charges and consider claims for overpaid sums. Each case will depend on the wording used in the lease. Please see our article on this controversial issue here.
Tougher energy efficiency measures on the horizon
On 18 June 2026, the Government published its interim response to longstanding consultations on minimum energy efficiency standards (MEES) for commercial properties. The previously proposed interim requirement of EPC C by 2027 has been dropped. Instead, from 2031, privately rented non-domestic buildings over 1,000 square metres will be required to reach EPC B, where cost-effective. Buildings under 1,000 square metres remain subject to the current minimum of EPC E, with no new deadline. Secondary legislation is required before the EPC B requirement becomes binding. Some energy efficiency duties may also be imposed on tenants, and further detail on this and on enforcement is expected in the Government's full consultation response. Landlords of larger premises should begin planning upgrades now to avoid a last-minute scramble.
Landlord and Tenant Act 1954 consultation
The initial consultation in 2025 concluded with a recommendation to keep this Act on the statute book. The 1954 Act gives business tenants a statutory right to renew their lease, unless the lease is contracted out of the Act's protection. The option to contract out will be retained. On 16 June 2026, the Law Commission published its second consultation paper, focusing on how the 1954 Act's renewal regime should be modernised in practice rather than whether it should survive. Proposals include simplifying the contracting out process, taking the friction out of renewal procedures and addressing modern leasing arrangements such as turnover rents and energy efficiency. The consultation closes on 16 September 2026.