Service Occupancy Agreement

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a legal right to renew their leases in many circumstances — a framework that has faced growing criticism for being outdated and overly complex.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.

Under Part 2 of the Landlord and Tenant Act 1954, most business tenants in England and Wales have the right to renew their tenancy when the current lease ends, with limited grounds for landlords to refuse. With 55% of UK commercial property rented, the Law Commission is consulting on whether this system remains effective for today’s commercial lease market.

Giving evidence to the first session of the Renters’ Rights Bill Committee on 22 October 2024, our Head of Policy and Campaigns, Timothy Douglas, demonstrated the value of engagement from our 18,000 members and raised several key areas where amendments should be made to ensure the Bill is fit for purpose. We will continue to share members’ insights and concerns about the legislation and advocate for balanced measures that protect renters while supporting landlords in offering safe, high-quality homes.

In the second of our series of webinars considering the potential impacts of the new legislation on agents and their businesses, one central message came across clearly - record-keeping will be of paramount importance once the Bill is enacted, and agents can use this time to prepare. Propertymark has developed a complete package of support to help property agents adjust and will continue to evolve our advice as the Bill progresses.