The end of upwards only rent reviews??

It began, as these things often do, with a quiet announcement that sent shockwaves through the property world.

In a move few saw coming, the Government recently revealed plans to ban upwards only rent reviews on all new leases. For tenants, it was music to the ears—a long-overdue relief. For landlords and property investors, it was something closer to a thunderclap: sudden, disruptive, and potentially costly.

Though no implementation date has been confirmed, the expectation is clear—the change could become law within the next 12 months, provided the Bill passes through Parliament.

If enacted, this shift would mark a fundamental change in how rents are reviewed: they could go down as well as up. It’s a concept that feels fair in theory, but in practice? That’s where things get murky.

Legal experts across the country are offering interpretations to the proposed changes, but no one has the full picture yet.

The Reality Behind Rent Reviews

Right now, even under the “upwards only” model, there are supposed to be checks and balances. Landlords must justify a rent increase with evidence; tenants can challenge it if they believe it's unwarranted. In theory, both sides can negotiate a fair settlement.

But theory often bends under pressure.

In today’s economic climate, landlords still wield considerable influence. They can push through rent hikes—even when those increases might not hold water—by leveraging the high cost of resolving disputes independently. It’s a financial game of chicken, and one side often backs down.

When negotiations fail, both landlord and tenant have one option: appoint an independent expert. Each submits their evidence. The expert, like a modern-day rent referee, reviews the facts and delivers a decision.

But the process isn’t cheap. Independent determinations can rack up serious costs, discouraging many tenants—and sometimes even landlords—from pursuing what they believe is right. The result? A system that often favors whoever can afford to endure the battle.

Ashurst Real Estate: At the Heart of the Process

At Ashurst Real Estate, we’ve stood in the trenches of this system—on both sides. We’ve worked with landlords and tenants through negotiated settlements and formal determinations. Rarely are these outcomes clean victories. Often, even when one side "wins," it comes at a price.

That’s why the Government’s proposal raises not just hope, but hard questions.

One such question…….what will happen to third-party dispute resolution if upwards only rent reviews disappear? Will the need for independent determination fade—or become more complex? Right now, such details remain in the realm of speculation.

Levelling the Field… or Shifting the Goalposts?

If the Government truly wants to level the playing field, it may need to look beyond the rent review mechanism itself. Reforming access to independent resolution—making it more affordable, more efficient—could be just as important.

Because here’s the uncomfortable truth: if the system to determine new rental values or other disputes remains prohibitively expensive, then tenants (the very group this legislation is meant to help) may still find themselves outmatched by deeper-pocketed landlords. The imbalance won’t be fixed; it’ll just take a different shape.

And one final thought: history has shown us that when governments interfere with established market practices, the market doesn't sit still. It adapts. And those adaptations often ripple far beyond their original intent.

If you're currently navigating a rent review—or preparing to—Ashurst Real Estate is here to help. With deep experience on both sides of the negotiation table, we bring insight, strategy, and clarity to a rapidly shifting landscape.

📞 Contact us at 020 7419 5117 to start the conversation.