The Landlord and Tenant Act 1954 has governed the relationship between commercial landlords and tenants for over 70 years. While the legislation remains a cornerstone of commercial property law, it is increasingly viewed as outdated, and proposals for reform are now under consideration.

The Act provides important protections for business tenants, particularly through the principle of security of tenure, which can give tenants the right to remain in occupation and seek a new lease when their current lease expires. However, it can also create challenges for landlords seeking to recover possession of their property.

Although any reforms are unlikely to take effect in the immediate future, both landlords and tenants should understand how the current rules operate and what potential changes could mean for them.

What is Security of Tenure?

Part II of the Landlord and Tenant Act 1954 gives many business tenants a statutory right known as “security of tenure”.

This means that when a qualifying commercial lease comes to an end, the tenant may have the right to remain in occupation and request a new lease. In many cases, the landlord cannot simply require the tenant to vacate once the contractual term expires.

Importantly, security of tenure can arise more easily than some landlords realise. A business tenancy lasting more than six months may qualify, and rights can also arise where shorter tenancies are renewed more than once.

For tenants, these protections can provide valuable business continuity. For landlords, however, they can restrict future plans for a property unless the correct procedures have been followed from the outset.

What Should Landlords and Tenants Be Thinking About?

One of the most important considerations is whether a lease should be granted with or without security of tenure.

The Landlord and Tenant Act 1954 allows parties to “contract out” of these provisions, meaning the tenant will not have an automatic right to renew the lease and will need to vacate at the end of their fixed lease term or negotiate a new lease. However, strict statutory procedures must be followed before the lease is entered into, including the service of warning notices and the completion of the appropriate declarations.

Failure to follow the process correctly could result in a tenant acquiring security of tenure unexpectedly.

Landlords should also be aware that ending a protected tenancy can be a lengthy process. A landlord seeking to oppose a lease renewal must generally serve a Section 25 Notice between six and twelve months before the proposed termination date and must rely on one of the statutory grounds set out in the legislation.

One of the most used grounds is where the landlord intends to demolish, reconstruct or carry out substantial works to the property.

In Pridewell Properties (London) Ltd v Spirit Pub Co (Managed) London Ltd [2026] EWHC 953, the High Court highlighted the importance of having genuine and well-developed redevelopment plans before relying on this ground.

The court found that a landlord could not oppose a lease renewal where the proposed works were likely to be delayed by 10 to 14 months and planning permission had not yet been obtained.

The case serves as a reminder that landlords cannot rely on speculative redevelopment proposals simply to regain possession. Evidence of a genuine intention to proceed with the works will be required.

Potential Reforms to the 1954 Act

The Law Commission is currently consulting on possible reforms to the Landlord and Tenant Act 1954 as part of a wider review of commercial landlord and tenant law.

The legislation is often criticised for being complex, time-consuming and difficult to navigate. The current lease renewal process can be costly for both parties, while the contracting-out procedure is highly technical and can create uncertainty if mistakes are made.

Although no immediate changes are expected, potential reforms could include changes to how security of tenure rights arise, whether security of tenure should remain the default position, and how lease renewals are dealt with.

The review is expected to continue for some time, meaning any legislative changes are still likely to be several years away. Nevertheless, landlords and tenants should keep a close eye on developments and consider how any future reforms may affect their property arrangements.

How Gepp Solicitors Can Help

Whether you are a commercial landlord looking to recover possession of premises or a tenant seeking to protect your right to remain in occupation, specialist legal advice can help you avoid costly disputes and delays.

Gepp Solicitors advises both landlords and tenants on all aspects of the Landlord and Tenant Act 1954, including:

  • Commercial lease drafting and negotiation;
  • Contracting out of security of tenure;
  • Lease renewals and Section 25 Notices;
  • Opposing or defending renewal applications;
  • Redevelopment and possession strategies;
  • Dilapidations and repairing obligations; and
  • Commercial property disputes.

Our experienced commercial property team provides practical, commercially focused advice tailored to your objectives, helping you navigate both the current legal framework and any future changes that may arise from the ongoing review of the legislation.

Whether you are negotiating a new lease, considering redevelopment plans, or facing a dispute regarding security of tenure, we can guide you through every stage of the process.

Need advice on commercial leases?

If you are a commercial landlord or tenant and would like advice on security of tenure, commercial lease renewals or any aspect of commercial property law, Gepp Solicitors can help.

To learn more about our services for commercial landlords and tenants, visit our Commercial Landlords and Tenants page here.

Alternatively, contact our commercial property team to discuss your situation and obtain tailored legal advice.