Railway Arch Rent Reviews: How to Challenge a Rent Increase

Rent reviews are the single biggest financial risk for railway arch tenants. Increases of 50–300% have been documented in the 2023 Parliamentary debate on Small Businesses in Railway Arches, with some tenants receiving demands that would make their businesses unviable overnight.

The problem is structural: The Arch Company and Places for London hold an information advantage. They manage thousands of arches and know every comparable rent in the portfolio. You know only what you're paying. This guide levels the playing field with a step-by-step process for challenging an unfair rent review.

Most arch leases include a rent review every 3 years, based on Open Market Rent — what a willing landlord and willing tenant would agree on for the property.

The typical process follows these stages:

1. Landlord serves a rent review notice proposing a new rent
2. Tenant has a fixed period (often 28 days) to serve a counter-notice
3. Negotiation between the parties (or their surveyors)
4. If no agreement, referral to independent determination (arbitrator or expert)

When you receive a rent review notice, you typically have 28 days to serve a counter-notice. If you miss this deadline, the landlord's proposed figure can become binding by default.

Step-by-Step Response

1. Check your deadline immediately — mark the counter-notice deadline in your calendar the day you receive the notice
2. Serve a holding counter-notice — even if you need more time to gather evidence, serve a counter-notice within the deadline stating you dispute the proposed rent
3. Gather comparable evidence — request the landlord's comparable evidence and research rents for similar arches in your area
4. Negotiate — engage directly or through a surveyor. Most reviews settle without formal arbitration
5. Escalate if needed — if negotiation fails, refer to independent determination (arbitrator or expert)

The landlord will present comparable evidence that supports their proposed rent. Your job is to present evidence and arguments that justify a lower figure. Here are the strongest levers:

1. Demand Full Comparable Evidence

In arbitration, you can require the landlord to disclose all comparable lettings — not just the ones that support their case. The Arch Company manages 5,200+ arches and has comprehensive data. Selective disclosure is common; push back.

2. Leverage Disrepair

Persistent dampness, poor access, structural issues, or vibration all argue for a lower market rent. A willing tenant would pay less for an arch with chronic water ingress than a dry one. Document everything with photographs and repair requests.

3. The Mezzanine Rule

If you installed a mezzanine at your own expense, it must be disregarded in the rent calculation under tenant improvement provisions. The landlord cannot charge you more for space you created.

4. Height Discount

The curved arch shape means significant floor area has restricted headroom. Areas below 1.5m should be priced at a lower rate per sqft than full-height space. Ensure your surveyor applies this adjustment.

5. The “80% Rule”

Guardians of the Arches has proposed that arch rents should be capped at 80% of equivalent conventional commercial space to account for the technical drawbacks (damp, noise, access restrictions, curved walls). While not legally binding, this is a useful benchmark in negotiations.

The legal framework for rent reviews is changing. Two developments will affect arch tenants in the coming years:

Ban on Upwards-Only Rent Reviews

Legislation announced in October 2025 will prohibit certain upwards-only rent review clauses in new commercial leases. This is being processed through the English Devolution and Community Empowerment Bill, currently in House of Lords scrutiny.

• Not retrospective — existing leases with upwards-only clauses are unaffected
• Likely effective 2027–2028 — after the Bill completes its parliamentary passage
• Landlords are expected to pivot to stepped rent increases or CPI-linked reviews in new leases

TfL's Revenue Target

Places for London aims to double gross rental income from £12 million to £28 million by 2032 across its 800+ arches. This is driving more aggressive rent reviews in some boroughs. If you rent from TfL, factor this trajectory into your business planning.

When to Instruct a Surveyor

Consider instructing a RICS-qualified surveyor if the proposed increase exceeds 20%, if the rent is above £25,000 pa, or if you cannot agree terms after initial negotiation. A surveyor typically costs £1,500–£5,000 depending on complexity, but can save you significantly more over the review period.