LAW COMMISSION'S REVIEW
The Law Commission has conducted two periodic reviews
of the Act. In 1969 it published a report recommending some amendments,[8]
which were implemented by the Law of Property Act 1969. In 1992
the Commission published a further report proposing the amendments
which form the basis of this present proposal.[9]
In the 1992 Report the Commission explained the background
to the review and its aim as follows:
The 1954 Act is an established part of the commercial
property market and the practices of that market develop and change
over the years, so it is appropriate for the statutory provisions
to be reviewed from time to time to ensure that they are still
fulfilling their intended purpose. On this occasion, we have identified
some features which experience has shown could benefit from change.
The aim of our reform proposals is to improve the working of the
Act by amending some of its details while leaving its fundamentals
undisturbed; this should increase its usefulness and eliminate
unnecessary formalities.
The Commission's recommendations were guided by the
following general principles:
- The overall balance between landlord and tenant
is generally regarded as fair and should be maintained. Clearly,
almost any single alteration will change that balance, but the
recommendations taken as a whole are intended to be broadly neutral.
- The renewal procedure is familiar to professional
advisers and to major property owners. It should not therefore
be changed unless there are clear countervailing advantages.
- Although it must always be possible to refer
disputes to court, to ensure that those involved can enforce their
statutory rights, it should not be necessary to take proceedings
as a routine part of the procedure. Recourse to the court should
be kept to a minimum to cut out expense and delay for the parties
and to reduce unnecessary burdens on the court system.
Structure of this report
The Government's proposals for changes to the Landlord
and Tenant Act 1954 may conveniently be split into a number of
sections, each dealing with separate aspects of the working of
the Act. The report below is in two parts. The first part describes
the effect of those sections, and assesses each one against the
standing order criteria applying to individual provisions ("burden";
"proportionality"; and "necessary protection").
The second part of the report assesses the proposal against the
remaining criteria, which apply to the proposal as a whole.
4 These are set out in s 30(1)(a) to (g). Briefly,
they are as follows: (a) tenant's failure to repair, (b) persistent
delay in paying rent, (c) other substantial breaches by the tenant,
(d) availability of suitable alternative accommodation, (e) the
tenant is a sub-tenant of part of the property originally let
and the landlord can obtain a better rent by re-letting the property
as a whole, (f) the landlord's intention to demolish or reconstruct
the premises, and (g) the landlord's intention to occupy the premises
himself either for the purposes of his business or as a residence. Back
5
See para 51ff. below under "Statutory Renewal Procedures". Back
6
S 23(2). Thus the tenancy of a members' tennis club has been
held to be within the Act, since playing tennis is an activity
which was carried on by a body of persons. But for an individual,
carrying on an activity is not enough. It must be a trade, profession
or employment. So a tenant who ran a free Sunday school in a shop
was held to be outside the definition. Back
7
For example, short fixed-term lettings not exceeding six months,
and certain other tenancies, such as agricultural holdings, mining
leases, and service tenancies: s 43. Where a new tenancy is granted
by the court for a period limited in accordance with a ministerial
certificate that on a certain date the use and occupation of the
premises should change in the public interest, there is no right
to renew the tenancy: s 57(3)(b). Back
8
Report on the Landlord and Tenant Act 1954 Part II (Law
Com. No. 17). Back
9
Business Tenancies: A Periodic Review of the Landlord and
Tenant Act 1954 Part II (Law Com. No. 208). Back