2025: The Year of the Rent Review

As we enter 2025, there will be excited Landlords throughout the UK who have patiently been waiting for the date specified in the leases they have granted, eagerly anticipating rent increases where a rent review is due this year.

Conversely, there will be large numbers of anxious Tenants concerned about forthcoming reviews which they know are imminent, and the possible ramifications of justified or unjustified rent increases, and the additional pressure this will put on their businesses and livelihoods.

Does a rent review always mean a rent increase?

No. A rent review does not necessarily result in a rent increase, and professional surveyors will look for comparable evidence to prove to both Landlords and Tenants the true value of a property (how open market rent is worked out).

What decides the new rent at a rent review?

The worth of the property in the Open Market at the rent review date, which can fluctuate depending on various factors. Landlords will often seize the opportunity to activate a review to ensure their properties are performing to their maximum potential and to increase their rental income, which is their right. Tenants must also ensure the rents being proposed are fair and based upon the Open Market Rental Value (as long as the lease allows for this, as opposed to fixed or RPI increases), instead of agreeing to arbitrary figures.

Do business performance or inflation count at a rent review?

No, unless the lease itself links the rent to an index such as RPI. Reasons such as how well or poorly a business performs, or inflation, which are often cited by both Landlords and Tenants when trying to justify their position, are misnomers.

Why does the negotiation matter to both sides?

Because a rent review is a milestone in every lease. When a rent review or lease renewal occurs, a delicate negotiation must ensue to ensure both Landlords and Tenants are satisfied with the result. Richard Lionel & Partners understands how important it is to agree a mutually beneficial settlement as well as protect a lasting Landlord/Tenant relationship.

Whilst in some circles 2025 is to be celebrated as the Year of the Snake, a potential rental uplift, or perhaps a rent reduction, is a milestone in every lease, and will certainly be viewed by both Landlords and Tenants as the Year of the Rent Review.

What has changed since this article was written?

A new law will stop upwards-only rent reviews in new business leases in England and Wales. The English Devolution and Community Empowerment Act 2026 received Royal Assent on 29 April 2026, but its rent review rules are not yet in force and do not apply to existing leases (the Act, section 100 (opens in a new tab)). What it means for Landlords and Tenants is explained in Rent reviews: best practice.