No change to core rights, but duration threshold under review
The Law Commission has provisionally concluded that the model of security of tenure should remain in place and that the existing mechanism for “contracting out” of renewal rights should be retained.
However, it is recommending a change to the threshold for excluding short-term tenancies from the Act. At present, tenancies of six months or less are excluded. The Commission intends to consult further on raising this threshold to two years, which could remove more short-term arrangements from the Act’s protections.
Apart from this, the Commission has suggested no further changes to the scope of the Act at this stage, but this will be explored further in the next phase of the review.
Read the background to the Law Commission review
Propertymark’s response called for clearer distinctions
In our response to the first consultation, Propertymark recommended a different approach. We argued that lease lengths of seven years or more should automatically fall within the protections of the Act, while shorter leases should be treated more flexibly.
We also raised concerns about the complexity of current legal procedures, which can lead to delays and uncertainty for both landlords and tenants. We highlighted that many small businesses do not have the resources to navigate bureaucratic processes and may prefer a more streamlined system.
Wider reform still needed
Propertymark also urged the Law Commission to consider how modern priorities, such as the need to decarbonise buildings, could be reflected in an updated framework. We called for clearer guidance around responsibilities for maintenance and sustainability improvements, which are often a source of confusion or dispute in commercial lease agreements.
The Law Commission’s second consultation paper is expected to explore these wider reforms in more detail. Propertymark will continue to engage with the process and champion the needs of agents and their clients across the commercial property sector. We’ll keep members updated once the next consultation opens.
