The Law Commission is currently staging a consultation in relation to Part 2 of the Landlord and Tenant Act 1954, with particular emphasis on ‘security of tenure’ provisions for business tenancies, which currently provides an automatic right for tenants to extend their term provided that the landlord and tenant have not opted out of the scheme.  

Many complaints have been raised about the existing legislation’s efficacy, which is perhaps to be expected in respect of legislation almost 70 years in age. Feedback from the sector includes the Act’s difficulty to understand, that it is clunky and a burden to implement, and that many landlords and tenants alike choose to opt out of it for these very reasons. 

What we will see by way of reform remains to be seen could we have an opt-in rather than the existing opt-out scheme, or could parliament take a more protectionist approach and render the provisions of the Act mandatory? 

The consultation itself is due to end on 19 February 2025, after which we will eagerly await the Law Commission’s recommendations for potential reform. 

How Capsticks can help 

Our Housing & Regeneration team is one of the largest in the country and acts for a range of Registered Providers in respect of development acquisitions, lease transactions (landlord and tenant), statutory agreements and site due diligence. Please do get in touch with Spencer Vella Sultana if you would like to discuss how we can help you to navigate the recent and upcoming changes to landlord and tenant legislation, and the measures and reforms being brought about to the Housebuilding Code.