Railway Arch Rent Review: How to Negotiate

Rent review clauses vary by landlord and lease type, but most railway arch tenancies follow one of three mechanisms. Understanding which applies to your lease is the first step in any negotiation.

Open Market Review

The most common mechanism for The Arch Company tenancies. The landlord proposes a new rent based on what the arch would fetch on the open market. These reviews are almost always upward-only — the rent can never decrease below the current level, even if market rents have fallen. The NAO found that arch tenants faced average rental increase estimates of 54%, with tenants in Bethnal Green and Hackney receiving demands of 200–345% that were eventually negotiated down to around 160%.

RPI-Linked Review

Common in Places for London (formerly TfL Commercial Development) leases. Rent increases are tied to the Retail Prices Index, sometimes with a margin — typically RPI + 1%. These reviews are more predictable than open market but can compound significantly over a long lease term.

Fixed Uplift

Some leases specify a fixed percentage increase at each review date — for example, 3% per annum compounding. While predictable, a fixed uplift can exceed actual market growth over time, leaving you paying above the going rate with no mechanism to challenge the figure.

The strongest weapon in any rent review negotiation is comparable evidence. The Guardians of the Arches hierarchy ranks evidence from strongest to weakest:

1. Open market lettings — new tenants taking arches at agreed market rents
2. New lettings by existing tenants — renewals where tenants moved to different arches
3. Completed rent reviews — agreed or determined rents at review
4. Lease renewals — rents agreed under the Landlord and Tenant Act 1954

Where to Find Data

• VOA Rating List — free and publicly available at gov.uk; shows Rateable Values for every commercial property
• RICS standards — the Red Book sets valuation methodology that surveyors must follow
• EGi / CoStar — subscription databases used by professional surveyors for transaction records
• Local commercial agents — can provide asking rents and recent deals in your area
• Neighbouring arch tenants — speak to your neighbours; shared information strengthens everyone's position
• Archlet area guides — check our London area rent pages for local benchmarks

Building Your Dossier

Collect at least 3–5 comparable transactions within a half-mile radius. Record the arch address, floor area, rent per square foot, lease date, and permitted use. Present your evidence in a clear schedule — this demonstrates professionalism and makes it harder for the landlord's surveyor to dismiss your case.

Consider a tenant in Bermondsey occupying a 900 sqft railway arch. The current rent is £25/sqft (£22,500 pa). The landlord proposes £35/sqft (£31,500 pa) — a 40% increase.

Step-by-Step Counter-Strategy

1. Check the VOA Rating List for Rateable Values of comparable arches on the same viaduct and surrounding streets
2. Survey 5 nearby arch tenants to establish actual rents paid (not asking rents)
3. Analyse the data — the median market rent is £28–£30/sqft
4. Prepare a written counter-proposal with your comparable evidence schedule attached
5. Negotiate to an agreed figure of £29/sqft (£26,100 pa) — a 16% increase instead of 40%

Proposed vs Market Evidence

By gathering evidence and negotiating firmly, this tenant saved £5,400 per year — or £27,000 over a five-year review cycle.

Many railway arch leases contain a “snooze you lose” clause. If you fail to respond to a rent review notice within the deadline set in your lease — often 28 days — the landlord's proposed figure may be deemed accepted. This means you could be locked into an inflated rent for the entire review period without any right to challenge it.

How to Serve a Counter-Notice

When you receive a rent review trigger notice, you must serve a formal counter-notice before the deadline expires. Your counter-notice should:

• State clearly that you do not accept the proposed rent
• Reference the specific clause in your lease that governs the review
• Propose your own figure, supported by comparable evidence where possible
• Be sent by recorded delivery or the method specified in the lease

Never Ignore a Rent Review Notice

Even if the proposed increase seems absurd, you must respond in writing. Ignoring the notice does not make it go away — it makes the landlord's figure your new rent. If you believe the notice was served incorrectly or outside the permitted window, challenge the validity of service rather than simply ignoring it.

Plan Ahead

Check your lease for the next review date and diarise it at least 6 months in advance. This gives you time to gather comparable evidence, consult the Guardians of the Arches, and appoint a surveyor if needed — rather than scrambling to meet a 28-day deadline.

Not every rent review requires a professional. The right approach depends on the size of the proposed increase and the financial stakes involved.

When DIY Is Feasible

For proposed increases under 25%, many arch tenants successfully negotiate on their own. Gather comparable evidence from the VOA Rating List and neighbouring tenants, prepare a written counter-proposal, and negotiate directly with the landlord's surveyor. Use our lease health check tool to understand your lease terms before you start.

When to Appoint a Surveyor

For increases over 25% or where the dispute exceeds £5,000 in annual impact, appoint an RICS-registered commercial surveyor. Expect to pay £1,500–£3,000 for a full rent review representation, including comparable evidence analysis, counter-notice preparation, and negotiation. A good surveyor will typically save you several multiples of their fee.

Guardians of the Arches

The Guardians of the Arches campaign group provides free guidance and mediation for railway arch tenants facing disproportionate rent increases. They have secured over £25 million in rental support for arch businesses since their formation. Contact them early — they can advise whether your case warrants professional representation.

Typical Timeline

A rent review dispute typically takes 3–6 months from the initial notice to an agreed outcome. If the parties cannot agree, the lease will specify a dispute resolution mechanism — usually referral to an independent surveyor acting as an arbitrator or independent expert.