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The Sunday Times reports that Michael Gove, the Levelling Up Secretary, has prepared a Leasehold Bill for inclusion in the King’s Speech.
In view of past government statements this could have important ramifications for residential leaseholders and their landlords.
The English Devolution and Community Empowerment Bill, which had its first reading in the House of Commons on 10 July 2025, contains an unexpected ban on upward-only rent review clauses in new commercial leases. The Government has stated that the policy behind this ban is supporting smaller businesses who are struggling to keep up with open market rent reviews that only allow rent to rise, not fall.
The measure has generated concern among landlords and investors, particularly given the surprising lack of prior consultation on such a major reform in a sector that has historically operated with minimal statutory intervention. For now, the Bill remains in its early parliamentary stages and is highly susceptible to changes following lobbying, with its Second Reading due in September.
This article sets out the scope of the proposed ban and its implications for the commercial rental sector if passed as it currently stands.
Leaseholder fails to overturn Freeholder's refusal of consent to Change of Use to Residential for enfranchisement risk