If you are a business owner renting commercial premises, understanding your rights is essential.
One of the most important protections available to tenants in England and Wales is security of tenure under the Landlord and Tenant Act 1954.
In this guide, we explain what security of tenure means, how it works, and when it may not apply.
What Is Security of Tenure?
Security of tenure is a legal right that allows a commercial tenant to remain in occupation of a property after their lease expires and, in most cases, to request a new lease on similar terms.
Find Out More About Security of Tenure
This protection is set out in the Landlord and Tenant Act 1954 (the “1954 Act”), and it applies to most business tenancies.
Put simply:
If your lease benefits from security of tenure, your landlord cannot simply require you to leave at the end of the term.
Who Does the 1954 Act Apply To?
The 1954 Act generally applies where:
and it includes many types of businesses, such as:
What Rights Does Security of Tenure Give Tenants?
If your lease is protected, you benefit from:
> The right to stay in the property – You can remain in occupation after the lease expiry date until it is formally terminated.
> The right to request a new lease – You can apply for a renewal lease on similar terms; and also
> Protection from eviction – A landlord can only refuse a new lease on specific statutory grounds (explained below).
When Can a Landlord Refuse a New Lease?
A landlord does not have an automatic right to remove a tenant. They must rely on one of the statutory grounds for opposition, including:
Some of these grounds require the landlord to pay compensation to the tenant.
How Is a Lease Brought to an End?
A protected lease does not simply end on its expiry date. Instead, it continues until formally terminated by:
It is important that these legal notices:
Can You Contract Out of Security of Tenure?
Yes. It is common in modern commercial leases for the parties to “contract out” of the 1954 Act.
This means:
And importantly, to contract out validly, a formal process must be followed before the lease is completed, including:
Why Does This Matter for Businesses?
Understanding whether your lease is protected is crucial because it affects:
and many disputes can arise due to misunderstandings about these rights.
How We Can Help
At Lawson West Solicitors, our commercial property solicitors regularly advise landlords and tenants on:
If you are unsure about your rights or facing a lease renewal, we can provide clear, practical advice tailored to your situation.
Get in Touch
If you need advice on security of tenure or the Landlord and Tenant Act 1954, contact our commercial property team today. Please contact Commercial Property, Associate Solicitor Namisha Nijjar, on 0116 212 1058 or email nnijjar@lawson-west.co.uk.
