The Landlord & Tenant Act 1954 Review: What Commercial Property Owners Need to Know

This is the second stage of the Law Commission's review. Following its first consultation, the Commission provisionally concluded that the existing contracting-out model of security of tenure should be retained, as it balances the interests of landlords and tenants. 

The current consultation focuses on how that system could be modernised and simplified. 

The second consultation opened on 16 June 2026 and closes on 16 September 2026.

Why the Landlord and Tenant Act 1954 matters 

Part 2 of the 1954 Act gives qualifying business tenants the right to remain in occupation after the contractual term and to seek a new tenancy. This is known as security of tenure. A landlord can oppose renewal only on grounds set out in the Act, which may include certain tenant defaults or the landlord's intention to redevelop or occupy the premises. 

The parties may agree before the lease is granted to contract out of the Act, meaning that the tenant will not normally have a statutory right to renew when the lease ends. These commercial tenants' rights can protect business continuity. For landlords, the regime can affect renewal strategy, redevelopment plans, timing, rent and the terms of any new lease. 

Why the 1954 Act is being reviewed 

The Law Commission says aspects of the existing legal framework, which is now over 70 years old, are considered burdensome, unclear or out of date, leading to unnecessary cost and delay for both landlords and tenants. The review is intended to consider how the law can continue to protect business tenants while supporting a more modern and efficient commercial leasehold market.

What the consultation could change 

The first stage of the review considered whether the existing security of tenure model should remain. The Law Commission provisionally concluded that qualifying business tenants should continue to receive protection by default, while landlords and tenants should remain able to agree to contract out. 

The second consultation now focuses on how the system should work in practice. It considers which tenancies should qualify, how contracting out could be simplified, when landlords may oppose renewal, how the rent and terms of a renewal lease should be decided, and how disputes should be resolved. 

If implemented, the reforms could affect whether some shorter or more flexible lettings receive protection, how leases are contracted out, how renewal terms are decided and how disputes are resolved. These are proposals only. The current LTA 1954 rules continue to apply unless and until the law is changed. 

What property owners should do now 

Landlords and tenants should continue to follow the existing LTA 1954 rules and plan lease events early. They may also wish to review protected and contracted-out leases, upcoming expiry dates, redevelopment objectives and standard documents that could need updating if reform follows. 

Specific advice should be taken before serving or responding to a statutory notice, agreeing renewal terms or relying on a ground of opposition. 

Landlord and Tenant Act 1954: frequently asked questions 

What is the Landlord and Tenant Act 1954? 

It is legislation governing renewal rights for qualifying business tenancies in England and Wales. Part 2 generally allows a protected tenancy to continue after contractual expiry and gives the tenant a right to seek a new tenancy. 

What does Part 2 of the 1954 Act cover? 

It covers security of tenure, including qualifying tenancies, continuation and termination, renewal applications, opposition grounds, rent and other renewal terms, compensation and contracting out. 

Why is the Landlord and Tenant Act 1954 being reviewed? 

The commercial leasehold market has changed, and landlords and tenants have reported that aspects of the law are burdensome, unclear or out of date. The review considers how it could work more effectively for a modern market. 

When does the Law Commission consultation close? 

The second consultation opened on 16 June 2026 and closes on 16 September 2026. The Law Commission will then consider responses and publish recommendations for the Government to consider. 

Next reads 

• How Reform of the Landlord and Tenant Act 1954 Could Affect Future Commercial Leases

• Security of Tenure: Five Questions Landlords and Tenants Should Be Asking Now 

Commercial lease and renewal advice 

Our Commercial Property team advises landlords, tenants, investors and owner-occupiers across London on new leases, lease renewals, Heads of Terms and rent review drafting. 

If you are negotiating terms now, we can help you assess the practical impact on your proposed lease or renewal. Call 020 8858 6971 or email commercialpropertyenquiries@grantsaw.co.uk to discuss your circumstances. 

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Disclaimer 

This article is for general information only and is not legal advice. Laws and guidance change and outcomes depend on facts. If you need advice on your situation, please contact us. Grant Saw Solicitors LLP is authorised and regulated by the Solicitors Regulation Authority. 

Last updated: 14 September 2026