Compensation for Refusal of a New Business Tenancy

Originally published June 2004

Pursuant to section 30(1) of the Landlord and Tenant Act 1954, a tenant is entitled to compensation where a landlord opposes the grant a new tenancy in a section 25 notice or a counter-notice to a tenant’s section 26 request on grounds which do not relate to a default on the part of a tenant.

Those grounds are as follows:

• Section 30(1) (e) - where the tenancy was created through subletting part of the premises which the landlord would be able to let as a whole for a higher rent and the landlord intends to let or dispose of the whole of the premises on the termination of the tenancy
• Section 30(1) (f) – where the landlord intends to redevelop the premises on the termination of the tenancy