Overview

This bill aims to ban upward-only rent review clauses in commercial lease agreements in England and Wales. It seeks to protect commercial tenants from unfair rent increases while allowing for rent adjustments to reach the original rent level if it's currently below that.

Description

The bill prohibits the use of upward-only rent review clauses in commercial rent agreements in England and Wales. This means that future rent reviews cannot only result in rent increases.

Exceptions:

The bill includes an exception: if the current rent is below the initial rent specified in the agreement, an upward-only review is permitted until the rent reaches the initial level.

Existing Clauses:

Existing upward-only clauses in commercial leases are declared void under this legislation.

Definition:

The bill defines "commercial rent agreement" as a tenancy governed by Part 2 of the Landlord and Tenant Act 1954.

Commencement:

The act will come into force six months after it receives Royal Assent.

Government Spending

The bill doesn't directly specify government spending. Its impact on government finances is indirect and likely minimal, potentially involving some administrative costs associated with enforcement.

Groups Affected

• Commercial tenants: Potentially benefit from protection against excessive rent increases.
• Commercial landlords: May experience limitations on their ability to increase rents.
• Legal professionals: May see an increase in work related to reviewing and amending existing lease agreements.

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