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Business tenancies: More change proposed

United Kingdom
01/03/2007
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The repeal of section 57 of the 1954 Act and the addition of a new ground of opposition to renewal has been proposed. On 28 February 2007 the Department for Communities and Local Government published a consultation paper looking at this area.

Section 57 currently allows public bodies that are landlords of commercial premises to regain possession of premises if there are required for their own purposes. The section is rarely used and the Government are consulting on whether it should be removed.

It is proposed that a new ground of opposition be added to section 30 if section 57 is repealed. Currently there are seven grounds of opposition (failure to comply with repairing obligations, persistent delay in paying rent, other substantial breaches, suitable alternative accommodation, consolidation of sublet parts, redevelopment, or requirement for own use). The new grounds proposed for public bodies are:

  • If vacant possession of the property is required to make it available for development by a third party developer in fulfilment of redevelopment plans; or
  • If vacant possession is required to enable use by a third party carrying out a specific function on behalf of the public body concerned.

Responses to the consultation are to be received by Friday 25 May.

Consultation paper: Landlord and Tenant Act 1954: Section 57

For details of other reforms proposed to the 1954 Act please click here.

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