If it ain’t broke … indication from the Law Commission that reform of 1954 Act will be limited

As we reported here, last year the Law Commission launched a consultation into possible reforms to the current model of security of tenure for commercial property in England and Wales. Whilst some of the proposals were drastic, the Law Commission has now released an interim statement following that consultation which suggests that any reform will likely be fairly limited in scope.

Whilst only an interim and provisional statement, the statement suggests that there are unlikely to be wide-ranging changes to the current model of security of tenure:

• The existing “contracting-out” model is the right model

• The types of tenancies that are excluded from protection (e.g. agricultural tenancies) is broadly appropriate

• The Commission expects to recommend extending the minimum lease term to benefit from security of tenure from 6 months and expects to consult on an increase to two years

The Commission will now set out a second consultation paper, which will focus on the technical detail of how the Landlord and Tenant Act 1954 might be reformed, including potential reform to the contracting out procedure. The Commission’s final recommendations will then be set out in a report following the second consultation.

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.