Business Tenancies

Abstract

Unlike legislation on public sector residential accommodation, statutes governing business lettings only affect the tenancy once it has come to an end. Until then the agreement will be governed by the general law of landlord and tenant — i.e. Common Law as enhanced by Statute. At the end of the lease, the Landlord & Tenant Act 1927 Part I, and/or the Landlord & Tenant Act 1954 Part II may come into play. Thus disputes on interpretation of user covenants, covenants against assignment, subletting, etc., or on improvements will be dealt with according to precedent or statutes which affect that particular type of covenant: the business lettings legislation is there to solve disputes surrounding security of tenure and grounds of possession at the end of leases which fall squarely within s.23 of the 1954 Act (see Figure 14.1). The two pieces of legislation already referred to have as their objective:

• (i) Granting security by:

  • (a) Allowing automatic and indefinite continuation of the tenancy on the same terms as during its subsistence until there has been proper notice of statutory termination.

  • (b) Allowing the tenant to request from the landlord, in certain circumstances, the grant of a new tenancy for up to fourteen years. Should the tenant make this request, the landlord is, of course, given the opportunity to dispute the claim.

• (ii) Providing compensation in the event of no new tenancy being granted.