A commercial rent review surveyor advises landlords and tenants on the rent payable from a review date set out in a business lease. We analyse the lease terms, the assumptions and disregards, comparable rental evidence and market conditions, then give you a clear opinion of market rent and support the negotiation or third-party process where instructed.
Sterlingworth Surveyors is an RICS-regulated firm. We act for landlords, for tenants, or for both parties jointly.
A rent review surveyor works out what the rent should be at a review date, based on the lease and the market, then helps you reach that figure — by agreement where possible, or through a third party where not.
That means reading the review clause, inspecting and measuring the property, analysing comparable evidence and preparing a reasoned opinion of market rent, then negotiating or preparing submissions.
The surveyor’s role is valuation and negotiation. Legal questions, such as how a clause should be interpreted or whether a notice is valid, are for your solicitor, and we work alongside them. If you also need the property’s capital value, for example for a loan or a sale, see our commercial valuations.
A rent review is a mechanism in a commercial lease that allows the rent to be reassessed at set points during the term. When and how the rent changes depends entirely on the wording of the lease, so every review starts with the clause itself.
Most clauses follow one of three approaches, and some combine them:
An upward-only clause is generally intended to stop the rent falling at review, even if the market has fallen. The exact effect depends on the wording of your lease.
Well before the review date. Early advice gives you time to understand the clause, gather current evidence and decide when to start the review.
Some leases say the review starts when one party serves a notice, sometimes proposing a new rent, and give the other party a set period to serve a counter-notice. Others have no notice procedure.
Whether a rent review deadline is strict depends on whether time is of the essence. For rent review deadlines it usually is not, unless the lease makes it so, either expressly or by linking the deadline to another clause such as a break clause. Where time is of the essence, missing a deadline can have serious consequences, so if you receive a notice, take advice straight away. Your solicitor will confirm which deadlines apply.
A rent review happens during the lease and follows the review clause. A lease renewal happens when a business lease ends and, for most business tenancies, is governed by the Landlord and Tenant Act 1954, which sets the basis for the new rent. See lease renewals under the 1954 Act below.
Market rent is assessed by comparing the property with rents agreed on similar properties, then adjusting for the differences and for the assumptions the lease tells the valuer to make.
Comparable evidence can include open market lettings, other rent reviews, lease renewals and third-party decisions. It does not all carry equal weight, and how much weight each piece is given depends on how closely it matches the property and the review date. Each comparable is adjusted for size, location, condition, lease terms, incentives such as rent-free periods, and date.
These are instructions in the lease about the imaginary letting the valuer must picture. Assumptions add things that may not be true in reality, such as vacant possession. Disregards remove things that would otherwise affect the rent, such as improvements the tenant made at its own cost. Small differences in wording can move the rent, which is why we read them first.
Shop rents are often analysed by zoning. The floor area is divided into bands from the frontage backwards, because space nearest the window is worth most to a retailer. The front band (Zone A) is usually valued at the highest rate and the bands behind at lower rates, so shops of different depths can be compared like for like.
We act for landlords, for tenants, or for both parties jointly, using the same method whichever side instructs us: the rent is assessed on the lease and the evidence.
We check what the clause allows, assess the rent the evidence supports, advise on starting the review and negotiate with the tenant or their surveyor, aiming for a rent you can defend if challenged.
We test the landlord’s proposal against the lease and the evidence, identify points that should reduce the rent and negotiate on your behalf, so you pay no more than the lease and the market justify.
Landlord and tenant can jointly instruct us for a single independent opinion of market rent. We never advise one side against the other on the same review.
Most rent reviews are settled by negotiation between the parties’ surveyors. A typical review runs like this:
If negotiation fails, most leases allow either party to refer the rent to an independent third party, who decides it. The lease says whether that person acts as an arbitrator or an Independent Expert, and usually who appoints them if the parties cannot agree, often a professional body
An arbitrator acts rather like a judge, deciding the rent on the evidence and arguments the parties put forward under a formal procedure. They can also decide who pays the costs, and their award can be challenged only on limited grounds.
An Independent Expert uses their own knowledge and judgement and can make their own enquiries, rather than relying only on the parties’ evidence. The process is usually less formal, and the lease normally makes the decision binding on both parties.
An expert witness gives independent opinion evidence in arbitration or court proceedings. Their duty is to the tribunal, not to the party paying them.
Sterlingworth undertakes arbitration, Independent Expert determination and expert witness work, subject to the usual checks for conflicts of interest.
| Arbitrator | Independent Expert | |
|---|---|---|
| Decides on | The evidence and submissions the parties provide | Their own knowledge and investigations, as well as anything the parties provide |
| Procedure | Formal, governed by arbitration law | Less formal, set by the lease and the expert |
| Challenge | Limited grounds, set by arbitration law | Normally binding under the lease, with little room for challenge |
When a business lease comes to an end, the new rent is not set by the rent review clause. For most business tenancies, renewal is governed by Part II of the Landlord and Tenant Act 1954, unless the lease was contracted out of the Act before it was granted or another exclusion applies, such as some short tenancies. A protected tenancy does not end automatically at the end of the term: it continues on the same terms until it is ended in one of the ways the Act allows, and the tenant can usually ask for a new lease.
The formal process usually starts with a notice in the prescribed form:
Unless the new lease is agreed, an application to the court must be made no later than the date in the landlord’s notice, or before the start date in the tenant’s request. The landlord and tenant can agree to extend that deadline, as long as they agree before it passes. Your solicitor will deal with the notices and any court application.
The rent and other terms are usually agreed by negotiation, often between the parties’ surveyors. If they cannot be agreed, the court decides. Under section 34 of the Act, the rent is what the premises might reasonably be expected to let for in the open market by a willing landlord, taking account of the other terms of the new lease and disregarding:
If the court sets the length of a new fixed-term lease, it cannot be more than 15 years. While the renewal is in progress, either party can ask the court to set an interim rent, payable while the old lease continues.
Only on the grounds set out in section 30(1) of the Act. They include disrepair caused by the tenant’s breach of its repairing obligations, persistent delay in paying rent, other substantial breaches of the lease, suitable alternative accommodation offered by the landlord, the landlord’s intention to demolish or reconstruct, and the landlord’s intention to occupy the premises for its own business or as its home. Where a new lease is refused only on certain grounds, including redevelopment and the landlord’s own occupation, the tenant may be entitled to statutory compensation when it leaves.
The rent on renewal is a valuation question, so we use the same evidence-based approach as for a rent review: we inspect and measure the premises, analyse comparable lettings, and advise on the rent and on the terms that affect it, such as the length of the lease, break clauses, repairing obligations and rent review provisions. We negotiate with the other side or their surveyor and, if the renewal goes to court, can give expert witness evidence on rent. Your solicitor deals with the notices, time limits and court application.
Depending on what you need, our service covers:
A written opinion of market rent at the review date, based on analysed comparable evidence.
How the review clause, assumptions and disregards affect rental value, as valuation input alongside your solicitor’s advice.
Schedules of evidence, reports and submissions, help with review notices in liaison with your solicitor, and third-party work.
Professional representation in negotiations with the other party or their surveyor, where required.
Advice on the rent and terms of a new lease under the Landlord and Tenant Act 1954, negotiation with the other side, and expert witness evidence on rent if the renewal goes to court.
We advise on rent reviews for offices, shops, industrial and warehouse units, and mixed-use buildings.
The fee depends on the property, the lease and the level of involvement you need — from a written opinion of rent to full negotiation or third-party proceedings. We confirm a fixed fee, or the basis of the fee, before you instruct us.
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Not against each other on the same review. We act for landlords or for tenants, and can be instructed jointly where both parties want a single independent opinion of market rent. We check for conflicts before accepting any instruction.
Instructions in the lease about the imaginary letting the valuer must picture. Assumptions add things, such as vacant possession or the tenant having met its repairing obligations. Disregards remove things, such as the tenant’s own improvements or its goodwill. Their wording can change the rent significantly.
Rents agreed on similar properties around the review date: open market lettings, other reviews, renewals and third-party decisions. Not all evidence carries equal weight; it depends on how closely it matches the property and the date. Each comparable is adjusted for size, location, condition, lease terms, incentives and timing.
Yes. We negotiate with the other party or their surveyor using a written, evidence-based case, report to you at each stage and settle only on terms you approve.
The review is not necessarily lost. Whether a review can still go ahead, and from when any new rent is payable, depends on the wording of the lease. Some leases make deadlines strict, so check the lease and take advice without delay.
It depends on the lease. An upward-only clause is generally intended to stop the rent falling at review, even if market rents have fallen. If the clause allows movement either way, it can go down. Your lease wording decides which applies.
A rent review resets the rent during the lease, following the review clause. A lease renewal happens when the lease ends: for most business tenancies, the Landlord and Tenant Act 1954 lets the tenant ask for a new lease, and if the rent cannot be agreed the court sets it at the open market level, with certain matters disregarded.
Only on the grounds in section 30(1) of the Landlord and Tenant Act 1954, unless the lease was contracted out of the Act. They include disrepair or other substantial breaches by the tenant, persistent late payment of rent, suitable alternative accommodation, redevelopment and the landlord’s own occupation. On some grounds, including redevelopment and the landlord’s own occupation, the tenant may be entitled to compensation.
Tell us about the property, the lease and the review date, and we will explain your options and confirm the fee basis before you instruct us.
