The Government has said it will review the Landlord and Tenant Act.
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Section 25 of the Act can be exploited by Landlords, allowing them to expropriate the investment the Tenant has made into the premises, including any goodwill developed over many years.
We are calling for a suspension of Section 25 (Grounds C to G), so that tenants cannot be evicted until a Government review has been concluded, and any reforms implemented.
Thursday 21st April 2022
The Government has no plans to suspend Section 25 of the Landlord and Tenant Act. Further intervention in the commercial property market should be made only after the upcoming review has reported.
The Government has no plans to suspend Section 25 of the Landlord and Tenant Act 1954, part II at this time. Suspension of Section 25 would not be a proportionate way of addressing the underlying issues with the legislation.
DLUHC is aware of concerns that the current commercial property legislation has not kept pace with the reality of the sector today. That is why, in December 2020, the Government committed to launching a review of the landlord and tenant relationship and the legislation surrounding it.
Review of the commercial leasehold legislation will inform a new framework to support more efficient and flexible uses of space across high streets and town centres. The full scope of the review is yet to be confirmed; further details will be announced in due course. As such, the Government cannot support further intervention in the commercial property market until the review has delivered its recommendations.
Department for Levelling Up, Housing and Communities