A practical guide to upcoming commercial property law changes in 2026

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There is some uncertainty around commercial property law this year, with a number of significant changes expected. With Energy Performance Certificate (EPC) requirements tightening, business rates and property relief reform, and new rent review structures, there is the potential for a large impact on the sector.

We know that landlords, occupiers, developers and investors need clarity on what these changes mean for their transactions and lease negotiations. In this article, we explain the most critical legal shifts, and how to prepare for them in contracts and negotiations.

Need expert support and guidance for commercial property law? Please contact Rachael Spalton who will be happy to advise.

Key points to know about changes to commercial property law in 2026

  • New rules for EPCs expected in the second half of 2026 include switching to a broader range of metrics rather than a single carbon metric, shorter lifespans meaning more frequent re-certification, a requirement to maintain a valid EPC throughout a tenancy and possibly bringing all listed buildings into the EPC regime.
  • Commercial landlords may be subject to stricter environmental rules, including having to make energy efficiency upgrades and incorporate green technology, such as solar panels and heat pumps.
  • Business rates will be revalued from 1 April 2026, based on rental vales as of 1 April 2024 and a new five-tier multiplier structure will be introduced that is intended to support the high street and the hospitality and leisure sectors with that support being funded by introducing higher multipliers for properties with a rateable value of £500,000 or more.
  • From 6 April 2026, Business Property Relief (BPR) and Agricultural Property Relief (APR) from Inheritance Tax will combine into a single tax-free allowance of £2.5 million per person, with a 50% relief for values above this.
  • Upward-only rent reviews may be banned for new commercial leases, meaning a rent review could see a tenant’s rent go down as well as up.

How to prepare for changes to UK commercial law in 2026

It is strongly recommended to get expert legal advice on how the changes will affect your commercial property agreements as soon as possible. You can then make sure that all your contracts are up to date and make any necessary revisions to ensure compliance.

If upward-only rent reviews are banned, this might assist tenants struggling in the high street by keeping rents lower.  But it could see changes to lease structures that significantly impact the sector.  We may see many more leases with short terms becoming the norm, with fixed rate rent increases and the possibility of downward rent reviews could affect asset values in the longer term.

New leases may require careful negotiations between landlords and tenants, as well other interested parties. Professional support through this process will help to protect your interests and avoid unnecessary conflict.

The increased allowances for BPR and APR are intended to protect smaller family businesses and farms but a significant number of farms and estates will still be affected by the cap.  Specialist tax advice may also be valuable for anyone likely to be affected by the changes to BPR and APR.

How Longmores can help with commercial property law

Longmores’ Commercial Property team works with landlords, occupiers, developers and investors across the full range of property law matters. We can advise on how any changes to commercial property law will affect you, revise contracts to comply with the new requirements and support you in negotiations as needed.

For expert support and guidance regarding on commercial property law, please contact Rachael Spalton who will be happy to advise.

Please note, the contents of this article are given for information only and must not be relied upon. Legal advice should always be sought in relation to specific circumstances.