Government bans upward-only rent reviews

Hospitality operators have been given a rare bit of good news from the government, following its decision to ban upward-only rent reviews.

As part of its English Devolution and Community Empowerment Bill, which was introduced to parliament on 10 July, the government is banning upward-only rent review clauses in commercial leases, which pit landlords against businesses, make rents unaffordable and cause venues to shut. 

The Night Time Industries Association (NTIA) has described the decision as "a landmark win" for independent businesses.

It says these clauses have fuelled rent inflation, undermined business confidence and contributed to the closure of hundreds of late-night venues, clubs and independent spaces.

"The banning of upward-only rent reviews is a significant and long-overdue win for our sector and a strong signal that the government is starting to back business in a meaningful way," says Michael Kill, CEO of NTIA. "These clauses have punished hospitality, nightlife and independent high street operators for years, this move will bring much-needed fairness and stability to commercial leasing."

Taking ownership

As part of the bill, the government is also making more local ownership of pubs, shops and social hubs easier through a new Community Right to Buy, meaning communities will have the first opportunity to purchase local assets when they are put up for sale, and be given an extended 12-month period to raise funding. 

"This is also a vital first step in a broader plan to empower local communities and rebuild regional economies," adds Kill. "We’ve lobbied hard to get this issue, and others like licensing reform and the modernisation of heritage protections, on the government’s agenda, and we’re pleased to see movement at last."

The bill is part of the government’s manifesto commitment to unlock a generational shift in power from Westminster to those with skin in the game, and rebalance prosperity, deliver economic growth and a decade of national renewal across the nation as part of the Plan for Change.

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