Our recent blog: Part II Landlord & Tenant Act 1954 – The Basics discussed the key features of Part II of the Landlord and Tenant Act 1954 however changes may be imminent as the Law Commission has recently announced their plans to review the Act with the aim of modernising the landscape for commercial leasehold properties.
The review has been commissioned by the Department for Levelling Up, Housing and Communities as a part of the government’s Anti-Social Behaviour Action Plan which aims to revitalise high streets and create town centres as a space which landlord’s and businesses choose to invest in.
The current legal framework is nearly seventy years old and it has been almost twenty years since any significant updates were made to the provisions. In the current climate, areas of the Act are criticised as being overly burdensome and outdated. The Law Commission estimates that around 50% of all UK commercial property is rented and it is therefore essential that the Act remains fit for purpose to keep up with the developing market.
According to a recent survey by the Property Litigation Association, the landlord and tenant legislation needs to be ‘quicker, clearer and simpler’ to help local businesses and enable economic growth. This review is now being turned into a major report to assist in the upcoming government consultation.
The Law Commission intends to conduct a wide review of Part II of the Act with a view to modernising the legislation and consider how the lease renewal procedure can be reformed. Emphasis appears to particularly be placed on the following aims:
- Creating a legal framework that is widely used rather than opted out of and ensuring benefits to both landlords and tenants.
- Supporting the efficient use of space in high streets and town centres both now and in the future.
- Creating a productive commercial relationship between landlords and tenants.
It is important that any reforms do not hinder the ability of parties to reach their own agreements if they choose. We expect the report to consider the updated position of a tenant’s right to renew the lease, the grounds under which a landlord can terminate the lease, compensation payable when a lease is not renewed and also the court process when considering new terms.
The review will commence later this year which will include discussions with interest groups and experts in this field to comment on the potential impact of any suggested reforms. The Law Commission aims to publish its pre-consultation paper by late 2023.
If you need further advice regarding a business tenancy dispute or agreement, call us on 01484 821500 or email us at info@ramsdens.co.uk to speak to one of our dispute specialists today.