Review of commercial leasing rules provides opportunity to modernise property law
Bishop & Sewell suggests that a review of commercial leasing rules will provide an opportunity to modernise property law.
Law firm Bishop & Sewell LLP says a review of “inflexible” commercial leasing rules by the Law Commission provides an ideal opportunity to bring landlord and tenant law into the 21st Century.
The Law Commission review will look at Part 2 of the Landlord and Tenant Act (1954), which concerns the right to renew business tenancies, allowing businesses to remain in their premises on the expiry of existing leases, typically known as “security of tenure”. The review aims to “make the system easier to understand” and “attract more investment into UK commercial property.”
Simren Savjani, who specialises in property law at Bishop & Sewell, said:
“It is 20 years since the Act was last reviewed and there have been many changes which have affected the commercial property sector, not least the impact that Covid has had on how law firms deal with property work.
“Digitalisation was essential to ensure legal processes could continue through the pandemic, but those changes have brought real benefits, and now the Law Commission review provides an ideal opportunity to really modernise property law, in the same way divorce laws have been made fit for modern society.
“The current laws regarding commercial leasing rules and security of tenure are out of date and overly bureaucratic and, together with the vast body of caselaw that has built up around them, often lead to both landlords and tenants spending vast sums on legal advice.
“For example, a security of tenure notice currently must be physically produced, notarised and served, and the process is very complex and inflexible, which often leads to notices being invalidated.
“While all this paperwork may be good for lawyers, it is not always the best use of our clients’ resources and by simplifying the language, processes and framework, reform of the Act would reduce the need for specialist legal support, while helping to bridge the gap between the rights of landlords and tenants.
“The Government also says inflexibility is holding back foreign investment in the UK’s commercial property sector.
“Following the exodus of workers from office blocks and the closure of many high street shops, the Law Commission review also offers the opportunity to simplify tenancy laws in order to give landlords greater freedom when it comes to redevelopment.”
The Law Commission has said it aims to publish a consultation paper on the review by December 2023, so it will be interesting to see how the concerns of both landlords and tenants are addressed.
For initial advice or to arrange a meeting with a member of Bishop & Sewell’s Landlord and Tenant team, please email [email protected] or call 020 7631 4141.
Kindly shared by Bishop & Sewell LLP
Main article photo courtesy of Pixabay
