In its recent interim statement, following the initial consultation that started last November, the Law Commission has outlined its preliminary views on the feedback received.
The statement suggests that while the 1954 Act is likely to remain fundamentally unchanged, there are proposed modifications aimed at enhancing the act's effectiveness and adaptability.
Key provisional conclusions include:
- Retaining the current 'contracting-out' model, as it is deemed appropriate. This decision comes after many consultees highlighted concerns that changing the model could disrupt the commercial leasehold market.
- Maintaining the types of tenancy that currently enjoy security of tenure, such as agricultural tenancies, under the existing legislation.
- Considering an extension of the current exclusion from security of tenure for tenancies of up to six months, potentially extending this to up to two years. This change aims to provide more flexibility in the short-term letting market, which could be particularly beneficial for retail and supply chain businesses looking for adaptable lease arrangements in response to market demands and economic conditions.
The Law Commission plans to conduct a second consultation focusing on the detailed technical aspects of how the 1954 Act could be refined, including potential adjustments to the contracting-out process. This next stage will be crucial for stakeholders, especially in the retail and supply chain sectors, to ensure the proposed changes meet the needs of modern business practices while maintaining market stability.