CJCH Solicitors has been featured in a recent episode of the Legal Insights podcast, produced by Business News Wales. In the episode, Mathew Clapham, Head of Commercial Property at CJCH Solicitors urges commercial landlords and tenants to take early legal and professional advice ahead of potential significant changes to the lease landscape in England and Wales. In the [episode], titled “Rent Reviews, EPCs and the Changing Lease Landscape”, Mathew, addresses two key areas: the prospective ban on upward-only rent reviews and potential tightening of Minimum Energy Efficiency Standards (MEES).
The English Devolution and Community Empowerment Act 2026 (‘the Act’), enacted on 29 April 2026, includes provisions that, once enacted into force by secondary legislation, will ban upward-only rent reviews in commercial leases in England and Wales. This would prohibit upward-only open market rent reviews, index-linked reviews, and turnover rent reviews. The ban is currently not expected to come into force until at least 2027, though parties entering into “tenancy renewal arrangements” (such as an option agreement or an agreement for lease for a new lease) from 17 March 2026 onwards should take into account the provisions of the Act now as any leases granted pursuant to such a tenancy renewal arrangement will be subject to its provisions once the ban is brought into force.
While the commercial impact remains uncertain, landlords should begin investigating alternative rent structures now, such as fixed or stepped rent increases and/or shorter lease terms, in response. Tenants with lease renewals due within the next 12 to 18 months are advised to seek prompt advice from both a RICS-qualified surveyor on market rent terms and a solicitor on the legal implications of the proposed ban on upwards-only rent reviews.
On the matter of energy performance, CJCH Solicitors highlights that, whilst the requirement for a minimum EPC rating of E to let any commercial premises has been in place since April 2023, a significant proportion of commercial stock in England and Wales is understood to fall short of proposed future requirements. Proposals currently indicate a move to a minimum C rating, potentially from as early as 2027, rising to a minimum B rating by 2030. No legislation has yet been enacted to implement these higher standards, but landlords should be mindful of such potential changes and not delay or defer planning for these potential changes.
The firm also draws attention to the growing prevalence of green lease clauses, which typically require landlords and tenants to co-operate on environmental performance and share relevant data. Tenants are advised to seek legal advice before agreeing to such provisions, as they may carry financial obligations.
Mathew Clapham discusses these developments in greater depth in the Legal Insights podcast, produced by Business News Wales. The episode is available to listen to here: https://businessnewswales.com/the-latest-commercial-property-updates-podcast/
