Boodle Hatfield Property Insights, Summer 2026 - Flipbook - Page 2
Boodle Hat昀椀eld
Property Insights
Reform of security of tenure
provisions
Reform of Part 2 of the Landlord and Tenant Act 1954
remains under active consideration.
The Law Commission published a consultation paper in
November 2024: Business tenancies: the right to renew
- models of security of tenure which sought views on
proposals to modernise the legislation. The interim
conclusions from the consultation were published in
June 2026, with the conclusion being that the current
“contracting out” model should stay, subject to a proposal
to raise the threshold for tenancies within the scope of
the Act from 6 months to 2 years.
A further consultation: Business tenancies: the right to
renew - modernising security of tenure was published in
June 2026, focusing on how the regime should operate
in practice to improve clarity and ef昀椀ciency. Proposals
include simpli昀椀cation of the contracting-out process
and updates to certain statutory grounds (including
Ground F) to re昀氀ect modern development practices. The
consultation is open until mid-September 2026.
Introduction of Martyn’s Law
The Terrorism (Protection of Premises) Act 2025,
referred to as “Martyn’s Law” is another key but not yet
operative reform. It is expected to come into force in
Spring 2027 following a two-year implementation period.
The Act will require those responsible for certain publicly
accessible premises and events to assess terrorism risks
and put appropriate protective measures in place. The
legislation is likely to be of particular relevance to owners
and occupiers of retail, leisure, hospitality, mixed-use
and event-space assets that regularly attract signi昀椀cant
numbers of visitors.
Kate Symons, Residential Property Senior Associate
The level of obligation will operate on a two-tier basis as
set out below:
Reform of commercial leases
•
A “standard tier” will apply where at least 200 people
are expected to be on the premises at any one time.
•
An “enhanced tier” will apply for larger premises and
events where more than 800 people are expected to
be present.
The 1954 Act is not the only Act to be under scrutiny from
the Law Commission. A Consultation Paper: Commercial
leasehold: overcoming barriers to transactions was
published in June 2026.
The Consultation Paper focuses on issues that impact
on commercial lettings, including the right of 昀椀rst refusal
where a landlord proposes to dispose of certain assets,
as provided in Part 1 of the Landlord and Tenant Act
1987, and the application of the Landlord and Tenant
(Covenants) Act 1995 which releases the parties to a
lease from future liability following assignment.
Although the review is not wholesale, the intention is
to streamline transactions and reduce unnecessary
complexity, delay and cost. Responses are required by
16 September 2026.
Kate Symons, Residential Property Senior Associate
Statutory guidance was published in April 2026 to
provide support for those within the scope of the Act,
alongside additional material and resources published
by the National Protective Security Authority.
For landlords, particularly in the retail, leisure and mixeduse sectors, the key issue will be responsibility. Leases
will need to address whether compliance sits with
the landlord, the tenant, or an operator, and how costs
are shared. This is likely to in昀氀uence both future lease
drafting and day-to-day management.
Kate Symons, Residential Property Senior Associate
