Security of Tenure in Focus: Why the Law Commission Is Keeping the Framework, Not Overhauling It

As a commercial property surveyor deeply invested in lease advisory work, I’m always on the lookout for legal updates especially those impacting security of tenure under the Landlord & Tenant Act 1954 (LTA). My insights come from recent firsthand involvement on the RICS panel responding to the Law Commission’s consultation. Here’s an in‑depth breakdown of the June 4, 2025 interim statement and what it means for UK business tenants.

A Quick Refresher on the Process

Consultation timeline: Launched 19 November 2024 and closed 19 February 2025.

Stakeholder engagement: Over 160 responses submitted, drawing feedback from landlords, tenants, surveyors (including RICS members), and industry groups .

Interim findings issued: On 4 June 2025, setting the stage for a more technical second paper .

1. Contracting‑Out Stays: No Shift to “Opt‑In”

The Law Commission’s first question: should we overhaul the contracting-out model—where tenants formally opt out of renewal rights—or start with a contracting-in default?

Interim verdict: Keep the current model. It received the most support among consultees, who highlighted its balanced nature and the risk of disrupting the commercial leasehold market .

This aligns with RICS and Commercial Tenants Association’s stance: no collapse of the existing framework.

2. No Change to Excluded Tenancy Types

Certain leases like those for agriculture or mining are already excluded from renewal protections. Both consultees and the Commission agree this set of exclusions remains appropriate. No statutory change there.

3. Sensible Shift on Lease Duration Threshold

Currently, only leases longer than six months enjoy renewal rights. But the rise in flexible and short-term tenancies prompted debate.

Interim direction: Raise the exclusion threshold, with likely figures up to two years. Leases of two years or less would not benefit from security of tenure .

This change acknowledges market realities making landlord decisions easier and giving tenants clarity when taking on short-term space. This will also save the long process of contracting out for shorter leases which sometimes causes confusion due to how stringent the requirements are. Although, I will concede that this is less protective than the status quo, my experience is that tenants that take short leases are not looking for long term rights but instead flexibility.

4. What We Expect Next

The second phase of the consultation (likely late 2025) will tackle technical levers in the system, including:

• Contracting‑out wording and process simplification

• Alternative dispute resolution (ADR), new tribunal or court channels

• Landlord opposition grounds, statutory disturbance compensation

• Renewal lease terms, rent, and the registration gap issue .

Why This Matters for Business Owners & Tenants

Consistency maintained: No fundamental change to how security of tenure works reduces uncertainty for both landlords and tenants.

New lease flexibility: Short-term agreements (6 months–2 years) may soon be automatically excluded easing landlord decision-making and allowing them to satisfy the modern demands of flexibility which is required in the new retail landscape.

Reduced administration: Potential streamlining of contracting-out procedures could cut time and cost for smaller businesses.

Crucial next round: The technical consultation is where the detail lives where process, cost, timing, ADR, and rent arrangements could shift.

Reflecting on the RICS Panel Experience

Rewind to the early 2000s: lease renewals were infrequent, with long-term agreements dominating. Fast-forward to today, and lease events renewals, dilapidations, rent reviews are an everyday concern for chartered surveyors. That’s why this Law Commission review is framed as a first‑principles deep dive, not just a housekeeping exercise.

From providing RICS feedback, it’s clear that the industry welcomes the Commission’s balanced approach maintaining core protections but allowing room for modern flexibility.

Final Perspective

What comes next contracting‑out streamlining, ADR options, rent and terms, opposition grounds will matter deeply. As a surveyor advising businesses, staying ahead means: following the second consultation, understanding implications for lease planning, renewing contract wording, and lease event strategy.

If you need help navigating these changes, or anything regarding your leases, let’s connect.