Background
In November 2024, the Law Commission issued a consultation paper, inviting views on reforming part two (security of tenure) of the Landlord and Tenant Act 1954. The consultation proposed four possible new models: mandatory tenure, abolition, contracting out, and contracting in. The consultation ran until February 2025, receiving over 160 responses from landlords, tenants, professionals, and representative bodies.
The results were issued on 4 June 2025, below we provide a short summary of the main points drawn from the consultation which will be of interest to landlords and tenants alike:
Contracting out model retained
- The current ‘opt out’ system remains the preferred approach. Broad reform is not recommended and so contracting out looks like it’s here to stay.
- No call to abolish or make security of tenure mandatory. The British Property Federation’s push for change was rebuffed.
Protected tenancy exclusions unchanged
- Existing exclusion categories (such as agricultural, short term tenancies) are considered to be largely appropriate and will remain.
Minimum term threshold likely increasing
- Proposed raising of minimum lease duration to qualify for security of tenure protections from six months to up to two years.
Broader reform deferred
- The interim statement issued by the Law Commission is provisional. More detailed technical reform proposals, especially on contracting out procedures (which currently require the service of a notice by the landlord and the signing or swearing of a declaration by the tenant), will follow in the second consultation paper to be released later this year.
What does this mean for landlords and tenants?
- It may be disappointing for landlords and tenants to hear that the position remains largely unchanged for now – the current contracting out requirements, process and exclusions remain intact, with no immediate overhaul. Disruption is unlikely in the short term.
- Short-term leases of less than two years may lose security of tenure protection under the new threshold. It would therefore be prudent to review any such leases before renewal or re-letting. This may reduce the risk to landlords of granting short term occupation arrangements.
- Start preparing for the next phase - we expect exact procedural changes to contracting-out to be published later this year; so now is the time to prepare for possible administrative adjustments. Given the widespread negative view of the current process of contracting out any measures which reduce the administrative burden would be welcome.
The Law Commission’s interim view favours limited reform, preserving the existing contracting-out regime and excluding categories, while proposing a higher minimum term for security qualification. Landlords and tenants should prepare for updated contracting-out procedures which may be introduced later in the year.
For more information, please contact our real estate team.
