Lease renewal

Part II of the Landlord and Tenant Act 1954 (as amended) is the primary legislation governing lease renewals in England and Wales. Landlords must be aware of their rights and obligations under the Act to ensure they maintain and improve investment values.

The Act details how a landlord can terminate a lease with a section 25 notice, and how a tenant can request a new tenancy with a section 26 notice. It also covers how landlords can oppose renewals and how new rents should be determined.

There are a small number of important exemptions to the Act that landlords should be aware of, and some significant case law that clarifies key issues.

In November 2024, the Law Commission launched a consultation to consider how security of tenure under the 1954 Act is working and whether it meets the needs of business tenants and landlords, as well as considering options for reform. It posited four alternatives as to security of tenure (from abolition of the Act to mandatory security of tenure), as well as asking if the types of tenancies that have security should be changed. The consultation closed on 19 February 2025, and on 4 June 2025, the Law Commission published its interim statement on the direction of reform, in which it provisionally concluded that the existing 'contracting-out' model is the right model. It also provisionally concluded that the six-month threshold for security of tenure should be increased. In its second consultation paper, the Law Commission expects to consult on increasing the threshold to two years.

This section is maintained by Peta Dollar, freelance lecturer, trainer and writer.

Document template: Lease renewal process flowchart

RICS standards: Surveyors acting as arbitrators in commercial property rent reviews

RICS journal article: An A–Z of the Landlord and Tenant Act 1954 for APC