Change is coming

As set out in our bulletin last week, the Law Commission has launched a consultation into Part 2 of the Landlord and Tenant Act 1954 (the "1954 Act"). The consultation asks for views on whether the current system is working and whether it can be improved. It is therefore a rare and important chance to shape the way that security of tenure operates in England and Wales. If you are fed-up with having to deal with statutory declarations and protracted Court proceedings for unopposed lease renewals, now is the time to do something about it!

The consultation has been split into two stages. The first is high level and is open now. It invites comments from interested parties (including landlords, tenants and professional advisers) on their experiences of the current security of tenure system. It also asks for views on the following potential new models:

• Mandatory security of tenure (i.e. removing the option to contract out);
• No security of tenure (abolishing the 1954 Act); and
• An "opt-in" security of tenure – with the default being that there is no security of tenure.

In addition to these broad models, the consultation is also seeking views on whether different models should apply to different types of tenancies. For example, should a different regime apply to different use classes, locations or property size?

The intention is that the first consultation will inform the broad model that is proposed by the Law Commission. A second consultation will then be published, which focuses on the detail of how the proposed model should work.

You can respond online using the form available: here. There is also a short survey here. The closing date for a response is 19 February 2025.

If you are a commercial landlord or tenant dealing with lease renewals and terminations or, you have any concerns or questions about the impact changes to the legislation may have on you or your business, please do not hesitate to get in touch with our Real Estate Disputes team or your usual Brodies' contact.