The Law Commission has published its first consultation paper considering how the right to renew business tenancies, set out in Part 2 of the Landlord and Tenant Act 1954 (and which is called “security of tenure”), is working and whether it meets the needs of business tenants and landlords.
The Commission would like to hear from businesses, landlords, their representative bodies and advisers and anyone else affected by the legislation.
The current law gives business tenants the right to renew their tenancies when they expire, under certain conditions.
It was introduced following the Second World War, making the legal framework nearly 70 years old.
‘CONTRACT OUT’
While the law has been updated in the past – notably to allow tenants to ‘contract out’ of the right when the tenancy is granted – it is now around 20 years since the last significant updates were made.
In this first consultation paper, the Law Commission asks if the current ‘contracting out’ model of security of tenure remains the right approach, or if a different model of security of tenure is now needed.
FIT FOR PURPOSE
Professor Nicholas Hopkins (main picture), Commissioner for Property, Family and Trusts, says: “The existing model of security of tenure was introduced decades ago, when the commercial leasehold market looked very different from how it does today.
“In our first Consultation Paper we ask whether the model is still fit for purpose, or if it’s time for a change. We are keen to hear from all of those affected by the law.”
This first consultation is part of the Law Commission’s wide review of Part 2 of the Landlord and Tenant Act 1954.
NEW LIFE
Alex Norris, Minister for Local Growth, adds: “We want to give local businesses the tools they need to breathe new life into our high streets and town centres.
“That is why we have asked the Law Commission to carry out this important work so we can bring forward a legal framework that is fit for purpose, boosting economic growth and productivity while making sure small businesses can occupy property more quickly and better understand their rights.”
The consultation is open until 19 February 2025 following which the Law Commission will consider responses.
