Proposed commercial rent control laws could have unintended consequences, according to Taylor Rose Law Firm.

The government is proposing a ban on upward-only rent hikes on commercial property in a bid to support small businesses with costs.

Any ban would come in an amendment to the English Devolution and Community Empowerment Bill, which is still passing through parliament.

The legislation proposes to abolish upwards-only rent hikes in new commercial leases that cover high street businesses, offices and manufacturing across England and Wales.

Taylor Rose Law Firm legal head of litigation Patrick Ansell said: ““Apart from the commercial implications for landlords and investors of a ban on upward-only rent hikes on commercial properties, the proposals could also have unintended consequences from a legal perspective.

“For example, it is possible that landlords would seek to increase rent through alternative mechanisms such as fixed periodic increases agreed at the start of the tenancy rather than upward-only rent reviews.

“It is also possible that landlords could be more inclined to insist on contracting out of the security of tenure provisions under the Landlord and Tenant Act 1954, to avoid being tied to a tenant for an indefinite period with the risk of declining rent once they are in occupation.”