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ARTICLE · 13 DECEMBER 2024

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Security Of Tenure – Hold Or Fold?

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In England and Wales, Part 2 of the Landlord and Tenant Act 1954 ("54 Act") is a cornerstone of commercial leasing.

United KingdomReal Estate and Construction
Jordan Yelland-Hey
Jordan Yelland-Hey

In England and Wales, Part 2 of the Landlord and Tenant Act 1954 ("54 Act") is a cornerstone of commercial leasing. However, following a first consultation published by the Law Commission of England and Wales ("LC") last month, change may (or may not) be on the horizon and the LC are canvassing opinion from interested parties.

The current position

The 54 Act gives a tenant occupying commercial premises for the purposes of its business a statutory right to a new tenancy on expiry of the contractual term of its existing tenancy, if it wants to remain in occupation. This protection is known as "security of tenure". Whilst there are criteria to qualify for security of tenure, most "business tenancies" are caught by the current statutory regime.

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