Propertymark has called for the government to reform the Landlord & Tenant Act 1954, to better reflect today’s challenges.
The Law Commission is currently reviewing tenancy security aspects of the Act, proposing four models.
These include abolishing the act entirely, introducing a “contracting in” regime where security of tenure applies only if parties opt in, introducing a “contracting out” regime where security of tenure applies only if parties opt out, or adding a mandatory security of tenure.
In response, Propertymark supports “the overall framework” of the 1954 Act but believes reform is necessary.
The trade group has argued a “contracting in” model is warranted, where tenants with leases of seven years or more are automatically included in the Act’s protections.
Those with shorter leases should have the option to opt in if they need security, Propertymark has argued.
To prevent unfair claims against tenants at the end of their lease, Propertymark recommends landlords should be required to provide an inventory at the start of the tenancy.
In addition, with non-domestic properties needing to meet an EPC rating of B by 2030, the law must clarify who is responsible for compliance — landlord or tenant, to ensure fairness.
“The 1954 Act has stood the test of time and remains vital for many commercial tenants - however, in its current form, it is costly, outdated, and does not meet the needs of modern businesses,” said Tim Thomas, policy and campaigns officer at Propertymark.
“Our consultation with commercial property agents across our membership has made it clear that reform is essential. We call on the UK Government to consider meaningful changes to improve flexibility while maintaining essential protections.”
