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With Andy Burnham now Prime Minister and Chancellor John Healey preparing to deliver his first Budget on 28 October 2026, the commercial property sector will be watching closely for measures that could affect lending, development and the lease market.
The Government will lay out its plans for growth and taxation for the coming years, and Burnham’s early statements have focused on creating a fairer tax system while supporting economic growth and business investment.
The key issue will be whether the government’s focus on economic growth translates into practical measures which support confidence and investment across the commercial property market.
Although the details of the budget remain unknown, the government has indicated that supporting business growth and reducing the costs faced by businesses will be prioritised. Burnham has also committed to reforming business rates with particular emphasis on supporting high streets and creating a more predictable environment for investment.
Lending and refinancing
Budget announcements can influence the availability, cost and terms of finance, even where lending itself is not directly targeted. Lenders often take wider economic conditions into account when assessing risk and determining their appetite to lend.
One area attracting particular attention is business rates. It is widely anticipated that reforms may benefit businesses in the retail, hospitality and leisure sectors by reducing occupancy costs. If implemented, these measures could improve investor confidence and increase demand for certain commercial properties. In turn, this may support property values and rental levels, both of which are important considerations for lenders and borrowers.
The Lease Market
Business rates reform may also have implications for landlords and tenants. Whilst some occupiers may benefit from reduced costs, there are suggestions that higher-value assets, such as large warehouses and distribution centres, could face increased business rates which will impact profits and operating costs.
At the same time, anticipated changes to rent reviews are expected in early 2027 which are likely to impact lease negotiations. We have a helpful article on our website that discusses upcoming ban on upwards-only rent reviews.
What might this mean in practice?
Although the Budget may bring greater certainty to the market, much will depend on the detail announced by the Chancellor. In the meantime, businesses should review their property arrangements and future plans to identify both opportunities and potential risks.
Our Commercial Property team advises landlords, tenants, investors and developers on a wide range of commercial property matters. For further information or guidance, please contact BHW’s Commercial Property department on 0116 289 7000 or email info@bhwsolicitors.com.