In 2026, commercial property law in England and Wales is undergoing significant review and reform, affecting landlords, tenants, investors and developers. This article outlines some of the key legal developments expected in 2026, including proposed amendments to the Landlord & Tenant Act 1954, possible reforms to upwards only rent reviews, revised EPC obligations and implementation of the Planning and Infrastructure Act 2025. Proposed ban on some upwards only rent reviews in commercial leases The English Devolution and Community Empowerment Bill continues its progression through Parliament and includes a major proposal affecting rent review mechanisms. The Bill seeks to prohibit certain upwards-only rent reviews in new commercial leases and in renewal commercial leases where the tenant benefits from security of tenure under the Landlord & Tenant Act 1954. The reforms are likely to shift negotiating dynamics, with tenants potentially benefitting from more flexible rent review options, such as upwards/downwards or index linked mechanisms, whilst landlords will need to consider how these may affect rental values and long-term investment strategies. Therefore, landlords and tenants entering new lease negotiations in 2026 should closely monitor the Bill’s progress. Reform of the Right to Renew under the Landlord & Tenant Act 1954 The Law Commission continues to consult on potential reforms to the statutory right to renew business tenancies. In its interim statement, it recommended largely maintaining the current regime but suggested modernising certain aspects. A key proposal is to increase the minimum lease term for which the right to renew can be excluded – from the current 6 months to 2 years. Future reforms to commercial leases: covenants, dilapidations and service charges. The Law Commission has also announced plans to examine further areas of commercial leasing reform, including: The Landlord and Tenant (Covenants) Act 1995, particularly around liability transfers. The Landlord and Tenant Act 1987 in relation to rights of first refusal. Legal frameworks governing maintenance, repair and upgrading of commercial buildings. Reform of dilapidations, service charge regimes and interactions with environmental compliance obligations. Given the complexity and increasing cost of maintaining commercial premises, especially in light of sustainability requirements, these potential reforms could significantly influence how parties allocate risk and cost in lease agreements. Energy performance of buildings: EPC and compliance changes Environmental regulation remains a major focus for Government. Ongoing consultations propose changes to the Energy Performance of Buildings regime, including: Revised EPC and DEC metrics. Shorter validity periods for energy certificates. Increased penalties for non compliance with Air Conditioning Inspection Reports (ACIRs). Commercial landlords should anticipate rising compliance obligations and potentially higher costs associated with upgrading building stock. Early assessments and proactive planning, particularly for older buildings, will be essential to maintaining lettability and meeting future regulatory thresholds. Planning and Infrastructure Act 2025: implementation begins Receiving Royal Assent in December 2025, the Planning and Infrastructure Act is set to roll out throughout 2026. As one of the Government’s flagship initiatives, the Act aims to: Streamline planning procedures, Speed up decision-making, and Support development and regeneration nationwide. A major reform includes expanding decision making powers for planning officers, reducing reliance on planning committees. This shift may accelerate the approval process for many commercial developments, although local authorities’ resources and internal processes will remain critical factors. Businesses and developers considering projects in 2026 should familiarise themselves with the Act’s new provisions and engage early with planning professionals to understand how the new system may affect timelines. How can Morr & Co help With an evolving regulatory landscape, landlords, tenants, investors and developers face new challenges and opportunities. Whether you are negotiating a lease, planning development, or assessing compliance obligations, Morr & Co’s specialist Commercial Property team can provide tailored guidance. For further advice or to discuss how these reforms may impact your commercial property interests, please contact our team on 0333 038 9100 or email info@morrlaw.com Although correct at the time of publication, the contents of this newsletter/blog are intended for general information purposes only and shall not be deemed to be, or constitute, legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article. Please contact us for the latest legal position. Authored by Nick Leavey Partner Message Tags Insights On this page Contact our team today to find out more get in touch
