The Law Commission has published an interim statement outlining the initial findings of its 2024 consultation on whether the Landlord and Tenant Act 1954 requires reform.
Contracting-Out Model Will Remain
Although several industry groups responded to the consultation suggesting that the 1954 Act could benefit from modernisation, the Law Commission has concluded that security of tenure for business tenants should be retained, and that the existing “contracting-out” model should continue.
What’s In, What’s Out: The Scope Remains Unchanged
The interim statement confirms the following:
- The current “contracting-out” model will be retained, and proposals for a “contracting-in” model have been rejected.
- The existing scope of the regime, which excludes certain types of tenancy—such as agricultural tenancies and periodic tenancies—will remain unchanged, in line with the consultation’s findings.
- At present, the 1954 Act excludes tenancies of up to six months. The Commission has provisionally concluded that this threshold should be increased, and intends to consult on raising it to two years.
What Happens Next?
The next phase of the project will involve a further consultation paper, seeking views on increasing the minimum term above which a lease cannot be contracted out of the Act—from six months to two years. The Law Commission will also consider technical reforms to the 1954 Act, including potential improvements to the contracting-out procedure.
For further information, see the Law Commission’s interim statement.
