Dispute Resolution

Security of Tenure for Commercial Tenants in Review

Part 2 of the Landlord and Tenant Act 1954 (‘The Act’) gives business tenants the right to renew their tenancies when they are due to end.  Giving business tenants security of tenure within their business premises.

14 Jan 2025

Team name
Holly Minney

Holly Minney

A consultation is currently being undertaken to review these provisions to ensure that the legal framework works within todays commercial property market.

As it currently stands many leases opt out of the provision of the Act.

The first consultant paper was published on the 19th November 2024 and ask key questions about the possible reforms to the Act. There is a consultant period which will remain open to the 19th February 2025 before a second consultation paper is issued.  Responses to the consultation paper can be submitted on line via Business Tenancies Consultation Paper 1 – Ministry of Justice – Citizen Space

This consultation paper considers the pros and cons of the current contracting out scheme and offers three alternatives:

  • Mandatory security of Tenure
  • Abolition of Security of Tenure
  • Contracting in

The consultation also looks at the types of tenancy that the Act applies to.

Mullis & Peake is not responsible for external links.

M&P Commentary

Holly Minney, Head of Dispute Resolution at Mullis & Peake, said:

“The consultation could result in significant changes being made to the current security of tenure provision, at this stage is difficult to assess if those changes will be more landlord or tenant friendly. If your lease is coming to an end and you are considering either terminating or renewing the lease, our experienced team will be able to advise and assist you with the process. Contact our Romford office for more information on 01708 784000.”

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