A review of ‘out of date’ commercial leasing rules can help bring landlord and tenant law into the 21st century, a property legal specialist at Bishop & Sewell LLP has said.
The Law Commission is reviewing part 2 of the Landlord and Tenant Act (1954) for the first time in 20 years.
Simren Savjani, a property law expert at Bishop & Sewell, said the current laws are ‘inflexible’ and often lead to tenants and clients spending vast amounts on legal advice.
She hopes the review will simplify the ‘overly bureaucratic’ current laws, bridge the gap between the rights of landlords and tenants and attract more investment into UK commercial property.
The Act under review concerns ‘security of tenure’ or the right to renew business tenancies, allowing businesses to remain in their premises on the expiry of existing leases.
The Law Commission is aiming to make the system easier to understand and attract more investment into UK commercial property.
Welcoming the review, Savjani said there had been many changes in the commercial property sector since the last review, not least because of the impact of Covid.
“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,” Savjani said.
“The current laws regarding commercial leasing rules and security of tenure are out of date and overly bureaucratic and, together with the vast body of caselaw that has built up around them, often lead to both landlords and tenants spending vast sums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.”
Savjani added reform of the Act could reduce the need for specialist legal support.
“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,” she said.
“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.”
A consultation paper on the review is expected in December.
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