The Law Commission’s latest proposals aim to make business tenancy renewals clearer, quicker, and better suited to the modern commercial property market. While we welcome most of the proposed changes, we have highlighted important caveats where caution is needed to prevent a rise in disputes and to ensure that all parties have adequate protections.

Revenue Scotland has refreshed its guidance on how Land and Buildings Transaction Tax (LBTT) applies to leases. The update does not introduce new tax rules but provides a useful reminder that further returns may be required when a lease is reviewed, varied, assigned or ended. By treating LBTT as an ongoing responsibility, rather than a one-off task at the start of a lease, property professionals can support compliance by building tax prompts into their lease processes.

Commercial property agents handling telecommunications sites in England and Wales should note a change to where disputes under the Landlord and Tenant Act 1954 are decided. From 30 July 2026, certain disputes fall within the jurisdiction of the First-tier Tribunal and Upper Tribunal, rather than the courts.

From 2031, privately rented non-domestic buildings over 1,000 sqm in England and Wales will be expected to meet EPC B, where it is cost-effective. Buildings below 1,000 sqm are expected to remain as the current minimum EPC E. The Department for Energy Security and Net Zero (DENZ) has stated the changes will only take effect after Parliament has passed secondary legislation.

The commercial property sector continues to play extreme strategic relevance across the entire of the UK, often taking the lead on shaping the success of communities by accurately provisioning to both current and future needs.

The English Devolution and Community Empowerment Act 2026 includes measures to prohibit upward-only rent reviews in new business leases in England and Wales. Propertymark supports measures that help businesses access suitable premises and contribute to stronger high streets. However, changes to commercial lease structures must also maintain confidence for landlords and investors who fund, maintain, and improve commercial property.

The UK Government has published draft regulations introducing a new disclosure regime for land agreements that give control over development without transferring ownership. The rules, which will apply in England and Wales, stem from the Levelling-up and Regeneration Act 2023 and are expected to come into force on 6 April 2027.

For over two million non-domestic properties across England, new rateable values have come into effect from 1 April 2026, marking the start of the latest three-year business rates cycle that will run until March 2029 and is expected to have significant implications for commercial property agents, landlords, and tenants navigating changing market conditions.

Latest insights reveal the sector is showing growing resilience, with easing inflation, a lower base rate, and rising rents helping to rebuild confidence despite ongoing structural challenges. Shifting consumer behaviour, targeted regeneration, and smarter use of data and technology are set to define the next phase of commercial property growth.

The UK Government has announced long-term investment packages for new and expanded Mayoral Combined Authorities (MCAs), with a clear focus on unlocking housing delivery and revitalising high streets. These agreements will give local leaders devolved powers and funding settlements to drive regeneration, build new homes, and support economic growth.

Stability is returning to the UK commercial property market as stats and sentiment reveal steady base rates, easing inflation, and renewed confidence across industrial and office sectors.

The Northern Ireland Dilapidation Bill aims to modernise and consolidate the rules which equip local authorities to tackle run-down, dangerous, or dilapidated buildings and land. It creates a single toolkit to support earlier action to protect amenities, aid regeneration, and keep people safe. The overall direction of the legislation is sound, and Propertymark is engaging with Ministers and MLAs to make improvements so that it will work better in practice.

The second quarter of 2025 shows the commercial property sector is balancing short-term challenges with long-term opportunities, as agents report shifting confidence across sectors.

Reforms announced are going to make it easier and cheaper for empty commercial units to be turned into hospitality venues will be introduced to support efforts to boost footfall and revitalise town centres.

Upward-only rent reviews will be outlawed in new leases across England and Wales under the English Devolution and Community Empowerment Bill. Concerns have been raised by the sector about how this move could affect property values and investor confidence. Plus, a shift of this magnitude requires careful implementation to prevent unintended consequences for future development and commercial supply.

Q1 reveals a resilient commercial property sector navigating economic uncertainty with cautious optimism. While inflation remains above target and lending challenges persist, strong confidence continues in the Industrial and Class E sectors.