The Landlord and Tenant Act 1954 is, undeniably, a crucial piece of legislation in respect of commercial landlords and tenants alike, owing to its provision of security of tenure which allows commercial tenants, even after the expiry of their tenancy, to continue to operate their business from the leased premises.
The Law Commission has made assertions that the legislative framework of the 1954 Act is both unclear and outdated, and, given that the Act has not been subject to any significant changes for circa 20 years, in November 2024 the Law Commission published their first consultation paper for the purpose of modernisation.
The first consultation paper considered both the advantages and disadvantages of security of tenure and the present “contracting-out” model whilst also highlighting some alterative options for discussion, these were:
- A mandatory tenure protection model
- The discontinuation of security of tenure rights
- An opt-in model
As well as this, the consultation paper also addressed the types and duration of tenancies which should be granted the benefit of security of tenure.
The Law Commission’s conclusions
The consultation period ended on 19 February 2025, and the Law Commission concluded that:
- The current ‘contracting out’ model should be retained.
- The types of tenancy which are currently outside the scope of protection of the Act should remain outside.
- The duration of tenancy that can benefit from security of tenure, which is currently those of more than 6 months, should be extended.
What happens next?
As per the Law Commission’s most recent update outlining current public projects in the works, we can expect the second consultation paper to be published in spring 2026. This time around, in light of the abovementioned conclusions reached following the initial consultation, attention will be directed to the technical detail of how the 1954 Act might be reformed.
Please see here a link to the Business tenancies: Interim statement on direction of reform – Law Commission
If this is something you need advice on then please get in touch with our Property Litigation team.