The Landlord and Tenant Act 1954 is finally set to be reviewed following the launch yesterday (27 March) by the government of a new Anti-Social Behaviour Action Plan.
The statement is set out among a raft of other detail contained in the 41-page policy document and confirms that the Law Commission will lead the review, with a view to making the commercial leasing system “easier to understand and more transparent and attract more investment into UK commercial property”.
Plans to reform the 1954 Act – a central piece of legislation that gives businesses the right to stay in their premises for longer – were first mooted in December 2020 but went quiet once the coronavirus pandemic took hold. But now the new review, commissioned by the Department for Levelling Up, Housing and Communities, will examine a key part of the Act.
According to the Law Commission, which aims to publish a consultation paper by December 2023, those who rely on the Act report that it is inflexible, bureaucratic and out of date, causing extra cost and delay for both landlords and tenants – as well as preventing space in high streets and other commercial centres from being occupied quickly and efficiently.
Modern legal framework
The Commission says its review – the first to be carried out on the 1954 Act in more than 20 years – will explore problems with the existing law, with a view to developing a modern legal framework that is widely used rather than opted out of, and that helps businesses to grow and communities to thrive.
The review will also seek to support the long-term resilience of high streets, by making sure current legislation is fit for today’s commercial market, while also considering government priorities, including net zero and levelling up.
Commenting on the review, Nicholas Hopkins, the law commissioner for property, family and trust law, said: “The right to a new lease has been available to many business tenants for more than half a century. Whether they operate in shops, cafés or factories, many businesses have been afforded the security of being able to continue in the same premises after their lease runs out.
“But it is clear that the law is in need of modernisation. Parts of the current legislation are overly complex and bureaucratic, which is holding back businesses and the high streets and town centres they operate in.
“Our wide-ranging review of this aspect of the Landlord and Tenant Act 1954 is a fresh opportunity to ensure that the law is simple and works for landlords, businesses and communities.”
Removing the barriers
Dehenna Davison, parliamentary under-secretary for levelling up, said: “For too long commercial tenants and landlords alike have been held back by a legislative framework that is outdated and out of sync with the realities of the sector today.
“With this review of the legislation, we hope to remove the barriers that inhibit growth by modernising the legal framework and making sure it is fit for today’s market, supporting the efficient use of space and fostering a productive, beneficial leasing relationship between landlords and tenants.
“In achieving these goals, this review will help to create a leasing framework that supports the government’s priorities of growing the economy and aiding the regeneration of our town centres. The review will also help to make leasing clearer and more easily accessible to small businesses and community groups, reducing the growing number of vacant properties on our high streets and the anti-social behaviour that comes with it.”
Dellah Gilbert, chair of the Property Litigation Association and partner at Maples Teesdale, welcomed the prospect of a “long-overdue review” of the 1954 Act.
Gilbert said: “Ensuring a streamlined and efficient framework for both landlords and tenants is essential for supporting the UK’s economic growth and providing a level and fair playing field for business. This in turn will help ensure further investment into UK real estate.
“We look forward to working with government and our members to inform the review, and to sharing the results of our own extensive study into where the Act needs improvement, but also what it does well.”
A boost to town centres
Melanie Leech, chief executive of the British Property Federation, added: “Outdated legislation has hindered town centre regeneration for years, and it’s great to see government finally make good on their 2020 promise to review it.
“Ideally, the review would be of all commercial tenancy legislation, but even a more limited review of the 1954 Landlord and Tenant Act could see some straightforward changes to speed up, simplify and reduce the cost of starting and renewing tenancies, making it easier to let empty properties and in turn boosting town centre economies.
“We look forward to constructively engaging with the review and helping modernise the commercial lease system.”
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Have your say
What changes would you like to see made to the 1954 Act? Send your thoughts to newsdesk@eg.co.uk
