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Main laws

United Kingdom Act

Landlord and Tenant Act 1954

The Landlord and Tenant Act 1954 sets the security-of-tenure and renewal framework for many business tenancies in England and Wales.

In forceUnited KingdomPlain-English guide5 practical checks

Plain-English explainers, not legal advice. Use the linked official source for section-level detail, and get advice for your situation.

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Quick read

  • The first question is still whether the tenancy is protected by the 1954 Act or has been validly contracted out.
  • Businesses negotiating a new lease, renewal or variation should also anticipate the future rent review rules without treating them as current law.

Likely relevant if

  • Retail, hospitality and office tenants
  • Landlords leasing business premises
  • Businesses renewing or exiting premises

Check first

  • Check whether the lease is inside or outside the 1954 Act protections
  • Follow the right notice and contracting-out process
  • Diary renewal, break and notice dates

Is the new rent review rule in force yet?

No. The change was enacted on 29 April 2026, but it was not yet in force on 10 August 2026.

Section 108 of the English Devolution and Community Empowerment Act 2026 requires commencement regulations for Part 5. Until that happens, the new Part 5 rent review rules do not apply.

Which rent review clauses are being targeted?

Schedule 37 of the 2026 Act inserts new Schedules 7A and 7B into the 1954 Act. The core future rule applies to certain terms where the lease calculation would make the new passing rent higher than a reference amount. When the rule applies, the terms have no effect to that extent and the new passing rent is set at the reference amount.

The reference amount is the benchmark produced by the review, such as an index-linked figure, market rent, another actual or notional rent figure, or turnover. The legal question is what the formula does, not whether the clause carries an 'upward-only' label.

Do renewals and review triggers need extra care?

Yes. Schedule 7A also gives tenants written-notice routes to trigger certain reviews or landlord actions where the lease would otherwise leave that step only with the landlord.

Schedule 7B is separate and narrower. It deals with certain renewal arrangements entered on or after 17 March 2026 where the initial rent is not known and the statutory conditions are met. It is not a general rule for every renewal.

Key points

  • Identify whether the transaction is a current lease, new grant, renewal or variation
  • Record the rent benchmark and review assumptions in the heads of terms
  • Check who can trigger the review and each operational step
  • Keep protected pre-commencement arrangements with the transaction record
  • Recheck the commencement position before signing or completing

Does security of tenure still drive the analysis?

Yes. Whether a tenancy is protected by the 1954 Act or has been validly contracted out remains central to renewal rights and negotiation strategy.

The rent review changes sit within the existing business tenancy framework rather than replacing it. Review tenancy status, the renewal route and the rent wording as one transaction.

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Update history

Amendment29 Apr 2026

Commercial rent review rule enacted but not yet in force

The English Devolution and Community Empowerment Act 2026 has amended the Landlord and Tenant Act 1954 so certain future rent review floor provisions can be ineffective. The change received Royal Assent on 29 April 2026 but is not yet in force because Part 5 still needs commencement regulations.