Law Commission’s second consultation on the Landlord and Tenant Act 1954

After a 19-month wait, the Law Commission’s second consultation on the Landlord and Tenant Act 1954 was finally published on 16 June 2026.  The first consultation concluded in November 2024 that the Act did not require radical reform but accepted that after more than 70 years, a few tweakments are in order to address issues that have accrued over the years.  Comprising over 500 pages, the second consultation is probably the most comprehensive review of this key piece of legislation.

There are 10 different areas of review, in each case inviting views from stakeholders but also, in some cases, setting out the Law Commission’s provisional view.  There’s too much to include in one article, so we will be exploring the different areas in a series which will be published in the coming weeks.  

The edited highlights of the areas and issues considered are:

1. To expand the unprotected tenancy thresholds beyond the current 6 months, to either 1 or 2 years, and to prevent implied periodic tenancies (caused when a tenant stays in occupation following expiry of a contracted out or unprotected tenancy) gaining protection.
2. To slim down the contracting out process to remove the many procedural traps that exist.
3. The potential removal of the process to validate an agreement to surrender a protected tenancy or, at the very least, to slim down the process.  The Law Commission is also looking at whether the validation process, if retained, should extend to surrenders (where no validation process is currently required).
4. Determination of terms (other than rent and length of term).  The Law Commission’s provisional view is that the O’May case, whereby the court weighs up whether a variation to a lease term is just and fair, should be retained.  However, it seeks views on whether the courts should be directed to treat environmental terms as a relevant circumstance and thereby open the door to the potential introduction of environmental provisions into leases.
5. On rent, stakeholders are invited to comment on whether equivalent of rent-free periods should apply to renewed leases, the introduction of turnover rents and other rent models and how, if at all, the determination of interim rent is to be reformed.
6. Redevelopment (ground f) and owner occupation (ground g) grounds of opposition. For ground f, the Law Commission explores whether and how the test for qualifying works can be adjusted to cater for modern construction methods and environmental works.  For ground g, it considers landlords occupying part only of the premises, ability to undertake works before occupation and intending to carry on the same business as the tenant.
7. Changing the basis of compensation from rateable value to the rent payable under the lease, whether compensation should increase incrementally over time as opposed to simply doubling after 14 years of business occupation and a review of exclusion of compensations provisions.
8. Three options for the forum for resolving disputes: greater use of the High Court for complex and high value cases and/or wholesale or partial transfer from the county court to the tribunal service.  Additionally, the Law Commission considers how to increase the use of ADR in both hostile and friendly renewals.
9. While the Law Commission is unconvinced that reform to minimise the registration gap, where landlords or tenants sell their interests before or during the renewal process, will be problem-free, it invites views from stakeholders on whether notices should be served on new unregistered successors and whether those successors should be permitted to take any steps under the 1954 Act prior to completion of registration.
10. Procedural tidying up and clarification, for example clarifying that a section 25 notice can be served on a tenant who is out of business occupation.

Responses to the consultation are required by 16 September 2026, giving all stakeholders plenty of time to gather their thoughts and add to the discussion. 

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