Does the Landlord and Tenant Act 1954 need modernising?
2 years ago | 7 comments
Propertymark pushes for Landlord and Tenant Act reform
12:02 AM, 11th February 2025, 1 year ago
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Propertymark has voiced its support for updating the Landlord and Tenant Act 1954, saying there’s a need to address contemporary issues.
Those include Minimum Energy Efficiency Standards and better tenant safeguards against unjust maintenance claims in England and Wales.
The organisation acknowledges the Act’s original intent to balance tenant security with landlord rights but suggests revisions are necessary.
The act has become costly
The organisation’s policy and campaigns officer, Tim Thomas, said: “The 1954 Act has stood the test of time and is desirable for many commercial tenants for security of tenure to renew leases.
“However, for some, the act has become costly, burdensome and does not reflect the modern needs of businesses.
“We have consulted with commercial property agents across our membership, and it is our clear belief that the Act remains important but must be reformed towards greater flexibility while maintaining protection for those that require it.”
He added: “We look forward to continuing to engage with the Law Commission’s further review and call on the UK government to consider the merits of changing the law.”
Conducting a comprehensive review
The Law Commission is conducting a comprehensive review of the legislation, specifically Part 2 concerning business tenancy renewals.
This analysis will examine the effectiveness of existing provisions and explore potential reforms.
The review’s initial consultation focused on commercial lease security of tenure, with gathered feedback to help inform a consultation later this year.
Models for security of tenure
Four models for security of tenure are under consideration, including abolishing the 1954 Act, a ‘contracting in’ system, a ‘contracting out’ approach and mandatory security of tenure.
Propertymark endorses the Act’s core principles, particularly safeguarding tenant security while ensuring fairness for landlords.
It proposes reforming lease contracts for seven years or more and enabling small businesses to secure protection through negotiation, rather than outright abolishment of the Act.
This aims to streamline the ‘contracting’ process, aligning it with modern business practices.
Tags:
business tenancies, commercial leases, Landlord rights, Landlord Tenant Act 1954, Law Commission, property law, property reform, security of tenure, Tenant rights, UK property
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Member Since July 2013 - Comments: 1996 - Articles: 21
4:06 PM, 11th February 2025, About 1 year ago
PropertyMark write:
“To prevent unfair claims against tenants at the end of their lease, Propertymark recommends landlords should be required to provide an inventory at the start of the tenancy. This would help resolve disputes over maintenance and dilapidations fairly. In addition, with non-domestic properties needing to meet an EPC rating of B by 2030, the law must clarify who is responsible for compliance—landlord or tenant, to ensure fairness.”
The long-standing position in the UK commercial market is that tenants sign an FRI (full repairing and insuring) lease. This puts on the tenant all of the risks of occupying the demised premises. A covenant to “keep” the premises in repair means, in law, a covenant “to put the premises into repair” if ever they were in a better state of repair. This is onerous. Well-advised tenants may try to limit their liability, certainly for secondhand space, by reference to a schedule of condition. An inventory is not of much use unless chattels owned by the landlord are included.
The FRI lease also compels the tenant to comply with all existing and any new statutory requirements. This will include paying to upgrade the EPC rating if required.