Business Tenancies: the right to renew
Consultation Paper 1: models of security of tenure
AREF's response
AREF's Landlord & Tenancy Act Working Group have assisted in producing AREF's RESPONSE to the Law Commission's initial consultation paper (details below) in relation to their review of Part 2 of the Landlord and Tenant Act 1954. In the response, which was submitted on 19 February 2025, AREF has requested a move to a contracting-in model of security of tenure. Although, whichever model prevails, we have requested that security of tenure is only available for leases longer than 5 years, and there are simplified processes.
AREF's Public Policy Committee are overseeing AREF's response to this consultation.
Background to the consultation
The Law Commission published on 19 November 2024 Consultation Paper 1: models of security of tenure. A summary of the consultation paper was 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 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.
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