Renters' Rights Act 2025, Phase 1 commencement
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England

LTA 1954 Part II: Business Tenants Have Statutory Right to Renew Lease — Landlord Opposes on s.30 Grounds (a)-(g) — s.25 Notice (6-12 Months) — Contracting Out (s.38A Warning Notice + Statutory Declaration) — Compensation on No-Fault Grounds (e)(f)(g)

Landlord and Tenant Act 1954 UK 2026 — Business Tenancy Security of Tenure, Contracting Out and s.25 Notices

Landlord and Tenant Act 1954 Part II applies to commercial tenancies (premises occupied for business purposes). Business tenants have statutory security of tenure (right to renew lease at end of contractual term). Landlord can oppose renewal on s.30(1) grounds: (a)-(c) fault grounds; (d)-(g) no-fault grounds. s.25 notice (landlord terminates): 6-12 months; must state whether opposing and on which grounds. Contracting out (s.38A): formal warning notice + tenant statutory declaration before lease granted. Compensation payable only on no-fault grounds (e)(f)(g): 1× rateable value (2× after 14 years). NI: Business Tenancies (NI) Order 1996. Scotland: no statutory equivalent.

12 min readUpdated 7 June 2026Last reviewed: 17 May 2026commercial-tenancylta-1954business-tenancysecurity-of-tenure

Security of tenure and s.25/s.26 notices

LTA 1954 s.24: tenancy continues beyond contractual term by statute; tenant can apply to court for new tenancy at market rent. s.25 notice (landlord): 6-12 months before termination date; prescribed form; must state whether opposing and on which grounds. s.26 request (tenant): 6-12 months; landlord must serve counter-notice within 2 months if opposing or loses right to oppose.

Grounds of opposition and compensation

s.30(1) grounds (a)-(c): failure to repair; persistent rent arrears; substantial breach. (d): suitable alternative accommodation. (e): sub-let; landlord needs whole property. (f): intention to demolish/reconstruct substantial part. (g): landlord intends to occupy for own business/residence (5-year ownership minimum). Compensation (s.37): payable on grounds (e)(f)(g) only; 1× rateable value (2× after 14 years in occupation).

Contracting out (s.38A) and devolved positions

Contracting out (s.38A RCLR 2003): landlord serves prescribed warning notice; tenant makes statutory declaration (at least 14 days before lease grant) or solemn declaration (less than 14 days); lease endorsed excluding ss.24-28. NI: Business Tenancies (NI) Order 1996 equivalent framework. Scotland: no statutory right to renew; tacit relocation may apply.

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