Dealing with the 1954 Act has been a mainstay and divisive subject for Landlords and Tenants alike for more than 70 years.
In 2023 the Law Commission launched its review of the 1954 Act, with an aim of creating a legal framework which is “fit for purpose” and which boosts and supports rather than inhibits economic growth in particular on the high street.
On completion of its first consultation, the Law Commission has released its interim statement which provides:
- Comfort and reliability for Landlords – the current ‘contracting out’ procedure is set to continue for the foreseeable future as it was deemed any changes to this procedure would cause disruption in the leasehold market.
- Proposed greater flexibility in the short-term lettings market – current legislation automatically excludes security of tenure of tenancies granted for a term of up to six months. The Law Commission has provisionally concluded that the six-month threshold should be increased to 2 years and expects to consult with stakeholders on this increase in its second consultation paper.
There is currently no timeframe for the second consultation paper but with any changes to the 1954 Act likely to have a significant impact on both Landlords and Tenants and the wider commercial property market, this is a subject likely to remain in sharp focus for years to come.
Whether entering into a new commercial lease or dealing with issues arising from an existing lease, our Commercial Property and Property Disputes Resolution teams are always here to provide expert advice to help you navigate the 1954 Act.
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