Service: Agency | Sector: London Offices | Contact: Graham Foster
The Landlord and Tenant Act 1954 governs the rights and obligations of Landlords and Tenants of premises occupied for business purposes, but how long will the Act remain in its current format? The last major revisions were the Amendments in 2004 which were intended to improve its working to make the renewal or termination of business tenancies quicker, easier, fairer and cheaper. Are those amendments now in need of overhaul to make contracting out easier and to fix the term start and valuation dates?
The Act offers a tenant of business premises significant protection, but in the fast changing environment in which most tenants operate flexibility is key – are they even bothered about the 1954 Act? In the age of short leases, tenant flexibility and the explosion of the serviced office/co-working sector is there a future for the Act? Who needs the costs and complexity involved with legislation from 64 years ago?
Whilst the Act may still have a role to play for the large occupiers requiring a degree of future certainty and control, most tenants don’t need the Act. If the building works for the tenant and the landlord actively manages his assets to ensure income security, both parties will work together and agree terms for future occupancy without being weighed down with the costs and complexity of out-dated legislation.