Interim Statement On '54 Act Reform

Summary

The Law Commission has issued an interim statement on the reform of the Landlord and Tenant Act 1954 (the Act). Its initial consultation addressed the "contracting-out" model, types of tenancy and duration of tenancy.

Background

The Act is 70 years old, and some consider it outdated for today's real estate market. It has not undergone a major overhaul for over 20 years. The explosion of e-commerce, effects of the 2008 financial crisis and shifts in government priorities have rendered parts of the Act outdated, cumbersome and unclear. Landlords and tenants frequently "contract out" of the Act's protections, as the associated formalities can be complex and slow, which can cause delay. The Law Commission launched its first consultation in November 2024. The interim statement represents the first major update since its initial consultation that closed in February 2025.

The Law Commission's Provisional Conclusions

In light of the responses received, the Law Commission has reached the following provisional conclusions:

• The existing "contracting-out" model received broad support and is favoured to be retained.
• Current exclusions for certain tenancies, like agricultural tenancies which have their own statutory regime, are considered to be appropriate and will continue.
• There is support for increasing the threshold from which security of tenure applies from a fixed term of six months to a term of two years.

These provisional conclusions will shape the next consultation paper and final recommendations, the timing of which is to be confirmed by the Law Commission in due course. This will focus on the technical details of how the Act might be reformed in light of the provisional conclusions of the first consultation to ensure that the Act works for the modern commercial leasehold market.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.