The paper addresses the detailed operation of how “security of tenure” operates in business tenancies – that is, briefly, the statutory continuation of existing tenancies alongside the tenant’s right to renew. It poses 67 questions as part of the consultation and will be of interest to landlords, tenants, and their advisers.

We have summarised the key proposed changes below and welcome any comments ahead of the consultation closing date of 16 September 2026.

Qualifying criteria

The Commission proposes narrowing the scope of tenancies that attract security of tenure:

• Duration threshold: The current 6-month exclusion for short fixed-term tenancies would increase to either one or two years.
• Periodic tenancies: All periodic tenancies granted to new tenants, and to existing unprotected tenants, would be excluded from the Act entirely.
• Existing protected tenants: Any renewal tenancy granted to a protected tenant would remain within scope regardless of duration, preserving continuity of protection.

Contracting cut

The Commission proposes replacing the current multi-step process with a single, streamlined procedure. A lease would be validly contracted out if it contained prescribed wording comprising a warning and a tenant declaration, prominently displayed within the lease itself. Tenants would no longer be required to sign a statutory declaration before entering into a contracted-out lease.

"Other Terms" of the Renewal Tenancy

The Commission provisionally concludes that the current test should be retained (generally, that the new lease should be on the same terms as the original). However, it asks whether sustainability concerns should be a statutory "relevant circumstance" for the court to consider.

Grounds of Opposition

The Commission has considered the grounds on which a landlord can oppose any renewal:

• Grounds A–E: No provisional proposals for reform, although any views on reform will be considered.
• Ground F (redevelopment): The Commission consults on expanding the scope of qualifying works to cover modern methods such as retrofitting and refurbishment, which may currently fall outside Ground F. This is particularly relevant to energy efficiency works.
• Ground G (landlord's own occupation): The Commission proposes amending the law so that a landlord may carry out alteration works to premises before occupying them. It also examines concerns about landlords using Ground G to acquire a tenant's goodwill – particularly in hospitality – and presents options including restricting Ground G where the landlord intends to carry on the same business or revising what compensation would be payable upon successful reliance of the ground in these circumstances.

Comments

A final report with recommendations will follow, and implementation will be a matter for government. If you have any comments or questions, please do get in touch.