The Law Commission's review to consider in detail how the right to renew business tenancies, set out in Part 2 of the Landlord and Tenant Act 1954 was working and options for reform, has been moved to a publication date of Autumn 2024.

The review was referred to the Law Commission by the Department for Levelling Up, Housing and Communities in March 2023, having been announced as part of the Government’s Anti-Social Behaviour Action Plan. The Law Commission and the Department have agreed Terms of Reference for the project, as follows:

For the Law Commission to conduct a wide review of Part 2 of the Landlord and Tenant Act 1954 with a view to modernising commercial leasehold legislation, with an emphasis on:

  • creating a legal framework that is widely used rather than opted out of, without limiting the rights of parties to reach their own agreements, by making sure legislation is clear, easy to use, and beneficial to landlords and tenants;
  • supporting the efficient use of space in high streets and town centres, now and in future, by making sure current legislation is fit for today’s commercial market, taking into account other legislative frameworks and wider government priorities, such as the “net zero” and “levelling up” agendas; and
  • fostering a productive and beneficial commercial leasing relationship between landlords and tenants.


The delay is unfortunate, as we had anticipated publication of the report by end of 2023. See our blog here for details of the initial project launch. This also begs the question on reform generally given 2024 is a general election year.

We will continue to provide updates on this issue as the Law Commission publishes further project updates and its report.

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

Contributors

Lucie Barnes

Partner

Leonie Hall

Legal Director

William Payne

Senior Associate