Fact sheet: Companies Act 2006, Section 44 – Court of Appeal decision

Propertymark was pleased to see our campaign work pay off on the first day of the Renters’ Rights Bill Report Stage debate in the House of Lords (1 July 2025) as Peers supported a proposal to allow Ground 4a to be extended to non-HMO student properties. The Report Stage provides an opportunity for further scrutiny and refinement of the Bill with two further sessions scheduled for 7 and 15 July.

The Act, now over 70 years old, gives business tenants a legal right to renew their leases in many circumstances — a framework that has faced growing criticism for being outdated and overly complex. Propertymark responded to the consultation, advocating for modernisation of the legislation to reflect the current needs of businesses. These initial recommendations come as part of a wider review focusing on how well the law is functioning for commercial property leases.

The Welsh Government has confirmed it will not proceed with proposals that would have required landlords to pay tenants compensation when issuing a Section 173 possession notice. The decision follows extensive consultation and lobbying from Propertymark and other sector stakeholders, who welcomed the move as a win for common sense and fair reform.

Property agents and landlords across England and Wales are increasingly facing prolonged delays when attempting to evict problem tenants—an issue being described as a postcode lottery due to the inconsistent and regionally varied response times within the County Court system. In response, the High Court Enforcement Officers Association (HCEOA), in partnership with Propertymark and other stakeholders, have launched a campaign to speed up possessions, calling on landlords to consider High Court enforcement as a more efficient solution in the most severely affected areas.