On 19 November 2024, the Law Commission published their first consultation paper in relation to their review of Part 2 of the Landlord and Tenant Act 1954. This consultation paper considers how the right to renew business tenancies, which is called “security of tenure”, is working and whether it meets the needs of business tenants and landlords. A summary of the consultation paper has been produced too.
The current law gives business tenants the right to renew their tenancies when they expire, under certain conditions. While the law has been updated since 1954 – 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.
The consultation paper 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. The consultation considers:
- The pros and cons of the current “contracting-out” model of security of tenure, and three alternative models: mandatory security of tenure, abolition of security of tenure and a “contracting-in” model.
- Whether the types of business tenancy which can benefit from security of tenure are the right ones.
The consultation is open until 19 February 2025. The Law Commission then expects to publish a second consultation paper based on the responses they receive to the first consultation and the conclusions they reach.
AREF's Public Policy Committee will be overseeing any response from AREF to this consultation. Any members that would like to contribute to a response should contact Jacqui Bungay ([email protected]).
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