The Law Commission has launched a consultation on the Landlord & Tenant Act (1954).
The commission said the legal framework underpinning the act, which is nearly 70 years, is “not working well for landlords or tenants” with those parties affected by the act reporting the laws are “burdensome, unclear and out-of-date”.
It is around 20 years since the act was last reviewed and in the intervening period the commission said “the world around us has changed and so has the commercial leasehold market. The rise of the internet has led to a dramatic increase in online retail and services, and landlords and tenants have been impacted by world events including the financial crisis of 2008 and the Covid-19 pandemic. Government priorities have also evolved during this time; for example, there is now an increased focus on the environmental sustainability of commercial properties.”
The commission added there were concerns that the act is “standing in the way of modern commercial practices, causing unnecessary cost and delay for both landlords and tenants, and preventing commercial space, such as our high streets, from being occupied quickly and efficiently”.
Melanie Leech, chief executive of the British Property Federation, welcomed the launch of the consultation. “The act reflects the post-war market conditions when there was very little commercial space available, and leases were typically much longer and less flexible,” she said. “Today, market dynamics are very different and overlaying this is the urgent need to invest to decarbonise the built environment in order to meet the UK’s net-zero targets.
“For example the stipulation that vacant possession can only be sought for redevelopment does not reflect the fact that today retrofit or refurbishment is often the best and most sustainable approach for modernising and repurposing buildings. We look forward to working with members and the Law Commission to present our ideas for how the act can be modernised to provide a better framework for property owners and occupiers to work together and accelerate investment into towns and cities.”
Ben Barrison, partner and head of real estate disputes at Forsters, added: “It is high time the 1954 act was reviewed, and it is welcome that the Law Commission is launching this initial consultation about the principle of security of tenure. Of the four options they are considering, a modernised contracting-out regime, to reflect the 20 years of tech advancement since it was last updated, would be an important first step and this would retain the balance the act brings to commercial landlord and tenant relationships.
“Apart from security of tenure, there is a great deal of additional work for the Law Commission to do in terms of the other mechanics of the 1954 act to deliver a modern regime for determining the lease terms and opposing renewal/termination cases. The 1954 act is currently too slow and cumbersome for the digital age, but the overarching intent remains good.”
The consultation paper and related background can be read here. The consultation closes on 19 February 2025.
