The Law Commission's second consultation on reform of the security of tenure regime under the Landlord & Tenant Act 1954 (the 1954 Act) looks at how the 1954 Act operates in practice and invites views on a wide range of proposals which aim to modernise the existing regime, increase efficiency, and better reflect contemporary commercial property practices.
This second consultation paper builds on the first one in 2024 and the Law Commission's interim conclusion based on the responses to that, that the existing contracting out model should remain.
Now the Law Commission is consulting on the mechanics of the 1954 Act to understand how the framework can be improved for landlord and tenants.
Across 13 chapters and 67 consultation questions, the Law Commission examines a broad range of issues including:
- Qualifying criteria – excluding the majority of periodic tenancies from the scope of the 1954 Act and increasing the duration threshold. Currently, fixed term tenancies of six months or less are excluded from the security of tenure regime. The Law Commission now proposes increasing this threshold to limit protection to tenancies which are granted for more than one year or alternatively more than two years.
- Contracting out – streamlining the contracting-out procedure by incorporating the warning notice and declaration into the lease itself. If introduced, this would improve efficiency for lettings and reduce the hassle of preparing separate standalone documents.
- Rent – changing the law so that the court can grant a renewal tenancy with a turnover rent and improving the interim rent process.
- Terms of a renewal tenancy – reviewing how the terms of a renewal tenancy are determined by the court, and whether changes should be made to address environmental issues such as energy performance and sustainability.
- Grounds of opposition – assessing the test in the ground (f) redevelopment ground and whether it should be updated to consider modern building methods and the Minimum Energy Efficiency Standards.
- Dispute Resolution process – exploring whether lease renewal disputes should continue to be heard in the county courts or whether some complex cases should be decided in the tribunal or the High Court. The potential for a more prominent role for Alternative Dispute Resolution is also under consideration.
The consultation closes on 16 September 2026. After reviewing the responses, the Law Commission will decide whether to make formal recommendations to the Government for legislative reform.
If you would like to discuss any of the issues raised in this consultation or to understand how the proposed reforms may affect your commercial property interests, please do not hesitate to contact a member of our Property Disputes team.
