Rent Review Clauses

Rent review clauses are a standard yet crucial feature of most commercial leases in the UK. These clauses allow the rent payable by a tenant to be adjusted at regular intervals during the term of the lease — usually to reflect changes in the property market. While they are designed to ensure fairness and keep rental values in line with market trends, they can also become a source of dispute or financial strain if not properly understood and negotiated. At Stretton Solicitors, we provide clear, strategic advice on rent review clauses to protect your interests, whether you’re a landlord seeking to preserve income or a tenant aiming for cost certainty.

Rent reviews are typically carried out every three to five years and are most commonly based on open market rental value. This means the rent is adjusted to what the property could reasonably command if let on the open market at the review date. However, the method of review can vary — from fixed increases and index-linked adjustments (such as RPI) to more complex mechanisms involving comparative valuations or turnover-based rent. Understanding the specific type of rent review in your lease is vital, as it directly impacts your future liabilities or income potential.

One of the most contentious aspects of rent review clauses is the “upward-only” provision, which allows rent to increase at the review date but never decrease, even if market rents have fallen. While this benefits landlords by preserving or increasing income, it can leave tenants locked into above-market rents — particularly in fluctuating or declining markets. This highlights the importance of legal advice at the lease negotiation stage, where tenants may be able to negotiate more balanced terms or push for open market rent reviews without the upward-only restriction.

Disputes over rent reviews often arise when there’s ambiguity in the lease wording, or disagreement over the valuation. These disputes can lead to costly delays or formal arbitration. At Stretton Solicitors, we carefully review lease terms to ensure clarity and protect your position. We work closely with valuers and surveyors when required, and help clients resolve disputes efficiently — whether through negotiation, mediation, or, where necessary, litigation. Our goal is always to minimise disruption to your business and secure a fair outcome.

For landlords, rent review clauses are a key tool for maintaining rental yield and ensuring lease terms reflect the property’s long-term value. For tenants, understanding and, where possible, negotiating the scope of rent reviews can be critical for long-term financial planning. Whether you’re entering a new lease or dealing with a rent review in an existing agreement, having experienced legal advisors on your side can prevent costly mistakes and ensure you understand both your rights and obligations.

Whether you’re a commercial landlord aiming to secure consistent returns or a tenant seeking cost predictability, rent review clauses can significantly impact your bottom line. At Stretton Solicitors, we offer practical, clear advice on drafting, interpreting, and negotiating rent review provisions — and resolving disputes when they arise. Get in touch today to speak with one of our commercial property experts and ensure your lease works in your best interest.