The 70-year-old legislation giving business tenants the right to renew their tenancies when they expire is coming under scrutiny by the Law Commission. In a consultation paper published today, the commission seeks views on whether the current 'contracting out' model of security of tenure under the Landlord and Tenant Act 1954 remains the right approach.  

The consultation is part of a wider review of Part 2 of the 1954 act with a view to modernising commercial leasehold legislation. It follows a request by the government as part of its plan to revive high streets and town centres. 

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Professor Nicholas Hopkins, law commissioner for property, family and trusts, said: 'The existing model of security of tenure was introduced decades ago, when the commercial leasehold market looked very different from how it does today. In our first consultation paper we ask whether the model is still fit for purpose, or if it’s time for a change. We are keen to hear from all of those affected by the law.'

The consultation will consider:

  • The pros and cons of the current contracting-out model and three possible alternatives: mandatory security of tenure, abolition of security of tenure and a 'contracting-in' model.
  • Whether the types of business tenancy which can benefit from security of tenure are the right ones.

The consultation is open until 19 February 2025 following which the Law Commission will consider responses. The commission then expects to publish a second consultation pape based on the responses. 

 

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