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Landlord & Tenant Act 1954 Gets a Makeover (Possibly)?

Published: 06/11/2025
Written by Curwens Solicitors

Last year, the Law Commission turned its spotlight onto reviewing the Landlord and Tenant Act 1954 - a venerable piece of post-war legislation that governs commercial leases in England and Wales. At over 70 years old, this Act is starting to show its age. Think dial-up internet in a 5G world (technically still functional, but really clunky and unloved).

The Commission's recent consultation asked whether it was time to give the old Act either a gentle facelift or, perhaps, a full cosmetic overhaul.

The Landlord and Tenant Act 1954 (Part II) is the statutory basis for “business tenancies” (commercial leases) in England & Wales, giving business tenants security of tenure (i.e. a default right to renew at lease expiry unless the landlord shows certain grounds). That framework dates from the post war era and though slightly amended over the years, has not seen a fundamental rethinking for decades.

Over this time, the commercial property market itself has evolved: more short-term tenancies, hybrid work patterns, flexible uses of space, faster property markets, and increased complexity in lease practices Commercial reality has moved on. Businesses are more mobile, leases are shorter, digital sales, digital working, indeed some tenants don’t even want long-term security (unless it comes with decent Wi-Fi and artisan coffee). Yet we’re still operating under a system devised when rationing was still a part of everyday life.


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In short: the Act needed to catch up with the 21st century, but without throwing landlords - or tenants - under the bus (or onto the litigation train)!

The Law Commission began reviewing the Act in 2024, and has concluded that the current rules are:

  • Overly complex, especially the contracting-out process
  • Out of step with modern leasing practices (shorter leases, pop-up shops, hybrid working…)
  • Not quite fit for purpose in 2025’s fast-moving commercial world

Nevertheless, the Commission has provisionally recommended retaining the default security of tenure system - where tenants have a right to renew unless they’ve formally “contracted out”. So yes, whilst all those statutory declarations and warning notices are staying the Law Commission has not committed to ensuring that the current formalities will remain unchanged.

This decision was probably met with a collective sigh of relief from commercial landlords, who may have feared a more tenant-friendly shake-up. However, It also suits many tenants who want greater flexibility, provided, of course, that they know what they're giving up.

There is a plot twist though The Law Commission is proposing to increase the minimum lease length required to qualify for security of tenure from six months to two years.

This would take a swathe of short-term leases - including many retail pop-ups, short lets, and temporary workspaces - outside the Act entirely. We would expect landlords to welcome this with cautious optimism, whilst tenants, on the other hand, may be giving their legal teams a worried glance. However, whilst this might seem like a significant change, in reality it is unusual for a commercial lease of less than 10 years not to be contracted out. So the fact that leases of less than two years may be excluded from being inside the act is in many ways uncontroversial given the reality on the ground.


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 The second stage of the consultation will, however, focus on all the bits that make landlords and solicitors sweat at 3 a.m.:

  • Streamlining the contracting-out procedure
  • Making lease renewals less labyrinthine
  • Reviewing the grounds for opposition
  • Modernising statutory compensation for disturbance
  • Revisiting how terms of new leases and rents are set when parties can’t agree

There’s lots in there. Just think of it as an attempt to take the vintage Volvo that is the 1954 Act and add Bluetooth and airbags - without wrecking the chassis!

Once the Law Commission completes its final report (post-second consultation), it’ll be up to the Government to review, consider, and then turn its recommendations into actual Legislation. That Bill will then need to survive the usual Parliamentary obstacle course, from committee scrutiny to arm-wrestling over amendments.

Simply don't expect overnight change, but with a General Election due by 2029, with political will, we could see reforms hit the statute books by late 2028.

We have a simple message for the commercial landlords and tenants that we represent: “Stay alert, don’t panic, and start thinking about how a two-year threshold might affect your leasing strategy.”

For Landlords:

  • Review your standard lease terms - especially for short leases.
  • Check whether your contracting-out procedures are up to scratch.
  • Consider how a two-year threshold might affect your leasing strategy.

For Tenants:

  • Don’t assume you’ll have a right to renew - especially for leases under two years.
  • Make sure you understand what you’re signing if deciding to contract out.
  • Ask about future rights before agreeing to a short lease.

Change is coming, but for now, slowly and consultatively!

Gerard Le Cain is a Solicitor in the Company Commercial Department. He advises on contracts and agreements including share purchase agreements and commercial contracts. 

Please note that our briefings are for informational purposes only, and do not constitute legal advice.

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