The document summarizes proposed reforms to the Landlord and Tenant Act 1954 in England and Wales. Key changes include allowing tenants to terminate leases with 3 months notice at any time rather than just on quarter days, requiring both parties to provide more details in response to requests for information, setting time limits of 6-12 months for landlords to issue termination notices and tenants to request new tenancies, and extending rights to compensation for misrepresentation. The reforms aim to make the rental process clearer and more practical for both landlords and tenants.

1. Landlord and Tenant Act 1954 Reformed
clear pr acti cal advi ce
Richard Pickersgill

2. Termination by tenant
• S27(2) notice amended
– minimum 3 months notice to terminate at any time (not
on quarter day)
– apportionment / reimbursement of rent

3. Requests for information
• Within last 2 years of the term
• Tenant’s notice may require to know whether the
landlord is the freeholder or a mortgagee in possession
and has any receiver been appointed?
• The landlord may require details of whether the tenant
occupies all or part of the premises for the purpose of its
business and to give details of any sub-letting

4. Requests for information
In addition
• Parties required to give details of changes taking place
within 6 months
• Landlord must provide details of a reversionary interest
in any part of the premises
• Landlord must provide information regarding Section 25
Notice or Section 26 notices
• Details of sub-letting from the tenant must include
whether it is contracted out of the Act

5. Requests for information
• As before Section 40 information must be given
within a month
• Proposals also deal with transfers of interests
• The duty on the recipient of a Section 40 Notice
ceases if the transferor has notified the party
giving Section 40 Notice of particulars of the
transferee

6. Requests for information
• The party serving the Section 40 Notice may transfer the
benefit to the transferee by giving notice to the recipient
or alternatively if the transferee gives such notice
• The specific right of a civil action for a claim for damages
for breach of statutory duty for breach of Section 40

7. Landlords notice to terminate tenancy
• A Section 25 Notice may be served not less than 6
months nor more than 12 months before the date of
termination specified therein
• The Notice must not expire earlier than the date when
the tenancy would otherwise have come to an end

8. Tenants request for new tenancy
under Section 26
• The request may be made for the tenancy to begin not
more than 12 nor less than 6 months after the date of the
request
• The date for commencement shall not be earlier than the
date on which the current tenancy would have come to
an end
• The Section 26 Request must set out the tenant’s
proposals

9. Tenants request for new tenancy
under Section 26
• Counter notice must be served by a landlord intending to
oppose the application for the new tenancy

10. Landlords notice to terminate tenancy /
tenants request
• The landlord’s notice must indicate the landlord’s
proposals for the new tenancy if the landlord is not
opposing the new tenancy
• The new Section 25 Notice must also contain a health
warning that these are the landlord’s proposals

11. Landlords notice to terminate tenancy /
tenants request
• Court application may now be made immediately after
service of the Section 25 Notice
• If a Section 26 Request then application must not be
made before 2 months have expired from the Request or
earlier if counter-notice is served by Landlord
• The landlord may now apply for termination without a
renewal

12. Landlords notice to terminate tenancy /
tenants request
•
Maximum time limits for a tenant’s application either:A. Date specified in the Section 25 Notice for termination; or
B. The day before the date specified in the request for the date for
commencement of the new tenancy; or
C. The parties are able to extend the deadline for applications to
Court by written agreement provided it is achieved within the
previous period

13. Landlords notice to terminate tenancy /
tenants request
• No limit to the number of extensions which can be
agreed and extensions extend a tenancy until the end of
that extended period

14. Other changes regarding proceedings
• Landlord may apply to Court for termination
• If landlord fails to make out the ground to terminate, a new
tenancy will be ordered without a separate application
• Directions then to deal with the application for the new
tenancy
• Only one set of proceedings may be issued
• A landlord’s proceedings may not be brought to an end either
to terminate or renew the tenancy without the consent of the
tenant

15. Companies / controlling shareholder
• The individual and the company controlled by the
individual are treated as equivalent
• A corporate tenant occupying the premises may apply
where the business is being carried on by the individual
controlling shareholder
• Individual controlling shareholder may apply where the
business is carried on by the company controlled by the
individual tenant

16. Companies / controlling shareholder
• Opposition may be relied upon where:
– proposed occupation by the company controlled by the
individual landlord
– where occupation by the controlling shareholder in the
case of a corporate landlord
• There may also be opposition if another member
of the same group of companies is to occupy the
premises

17. Members of a group of companies
• Group companies definition extended where:– an individual has a controlling interest as opposed to companies
being subsidiaries of a third party or one is the subsidiary of
another

18. Interim rent
Changes
• The tenant may now apply
• Only one party may make the application
• An application may not be made more than 6 months
from the expiry date of the old tenancy
• Commencement date is earliest date which could be
specified for termination / start of new tenancy in Section
25 notice or Section 26 request

19. Interim rent
Changes continued - assessment
Provided that the notice / request relates to the whole
demised property and that the landlord does not
oppose the application and the new lease is granted
then:• Interim rent will usually be the same as the rent
under the new lease

20. Interim rent
Changes continued – assessment
• modifications where substantial changes in the
market rent from the date that it first became
payable; or
• there have been changes in the terms of the lease
If above terms are not satisfied, then the previous
system generally still applies

21. Miscellaneous points
• Maximum length of term is 15 years and not 14
• Right to compensation for misrepresentation extended
for the position where tenant induced not to apply for a
new lease or withdraws a pending application by
misrepresentation or concealment on the part of the
landlord

22. Miscellaneous points
• Non-fault compensation of twice the rateable value
payable only in respect of part of the premises occupied
for 14 years or more with the lower single rateable value
payable for part occupied for less than 14 years

23. Landlord and Tenant Act 1954 Reformed
clear pr acti cal advi ce
Richard Pickersgill