(1) Where the property comprised in a tenancy consists of premises of which the National Assembly for Wales is the landlord by virtue of the Welsh Development Agency (Transfer of Functions to the National Assembly for Wales and Abolition) Order 2005 or by virtue of the Assembly exercising its functions under that Order, and the Assembly certifies that it is necessary or expedient, for the purpose of providing employment appropriate to the needs of the area in which the premises are situated, that the use or occupation of the property should be changed, paragraphs (a) and (b) of section 58(1) above shall apply as they apply where such a certificate is given as is mentioned in that subsection.
(2) Where the court makes an order under Part II of this Act for the grant of a new tenancy of any such premises as aforesaid, and the National Assembly for Wales certifies that it is necessary or expedient as aforesaid that the tenancy should be subject to a term, specified in the certificate, prohibiting or restricting the tenant from assigning the tenancy or subletting, charging or parting with possession of the premises or any part of the premises or changing the use of the premises or any part of the premises, the court shall determine that the terms of the tenancy shall include the terms specified in the certificate.
63 Jurisdiction of court for purposes of Parts I and II and of Part I of Landlord and Tenant Act 1927.
(1) Any jurisdiction conferred on the court by any provision of Part I of this Act shall be exercised by the county court.
(2) Any jurisdiction conferred on the court by any provision of Part II of this Act or conferred on the tribunal by Part I of the Landlord and Tenant Act 1927, shall, subject to the provisions of this section, be exercised,—by the High Court or the county court.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) The following provisions shall have effect as respects transfer of proceedings from or to the High Court or the county court, that is to say—
(a) where an application is made to the one but by virtue of an Order under section 1 of the Courts and Legal Services Act 1990 cannot be entertained except by the other, the application shall not be treated as improperly made but any proceedings thereon shall be transferred to the other court;
(b) any proceedings under the provisions of Part II of this Act or of Part I of the Landlord and Tenant Act 1927, which are pending before one of those courts may by order of that court made on the application of any person interested be transferred to the other court, if it appears to the court making the order that it is desirable that the proceedings and any proceedings before the other court should both be entertained by the other court.
(5) In any proceedings where in accordance with the foregoing provisions of this section the county court exercises jurisdiction the powers of the judge of summoning one or more assessors under subsection (1) of section 91 of the County Courts Act 1959, may be exercised notwithstanding that no application is made in that behalf by any party to the proceedings.
(6) Where in any such proceedings an assessor is summoned by a judge under the said subsection (1),—
(a) he may, if so directed by the judge, inspect the land to which the proceedings relate without the judge and report to the judge in writing thereon;
(b) the judge may on consideration of the report and any observations of the parties thereon give such judgment or make such order in the proceedings as may be just;
(c) the remuneration of the assessor shall be at such rate as may be determined by the Lord Chancellor with the approval of the Treasury and shall be defrayed out of moneys provided by Parliament.
(7) In this section the expression “the holding”—
(a) in relation to proceedings under Part II of this Act, has the meaning assigned to it by subsection (3) of section twenty-three of this Act,
(b) in relation to proceedings under Part I of the Landlord and Tenant Act 1927, has the same meaning as in the said Part I.
(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9) Nothing in this section shall prejudice the operation of section 41 of the County Courts Act 1984 (which relates to the removal into the High Court of proceedings commenced in the county court).
(10) In accordance with the foregoing provisions of this section, for section twenty-one of the Landlord and Tenant Act, 1927, there shall be substituted the following section—
The tribunal.
21 The tribunal for the purposes of Part I of this Act shall be the court exercising jurisdiction in accordance with the provisions of section sixty-three of the Landlord and Tenant Act, 1954.
64 Interim continuation of tenancies pending determination by court.
(1) In any case where—
(a) a notice to terminate a tenancy has been given under Part I or Part II of this Act or a request for a new tenancy has been made under Part II thereof, and
(b) an application to the court has been made under the said Part I or under section 24(1) or 29(2) of this Act, as the case may be, and
(c) apart from this section the effect of the notice or request would be to terminate the tenancy before the expiration of the period of three months beginning with the date on which the application is finally disposed of,
the effect of the notice or request shall be to terminate the tenancy at the expiration of the said period of three months and not at any other time.
(2) The reference in paragraph (c) of subsection (1) of this section to the date on which an application is finally disposed of shall be construed as a reference to the earliest date by which the proceedings on the application (including any proceedings on or in consequence of an appeal) have been determined and any time for appealing or further appealing has expired, except that if the application is withdrawn or any appeal is abandoned the reference shall be construed as a reference to the date of the withdrawal or abandonment.
(1) Where by virtue of any provision of this Act a tenancy (in this subsection referred to as “the inferior tenancy”) is continued for a period such as to extend to or beyond the end of the term of a superior tenancy, the superior tenancy shall, for the purposes of this Act and of any other enactment and of any rule of law, be deemed so long as it subsists to be an interest in reversion expectant upon the termination of the inferior tenancy and, if there is no intermediate tenancy, to be the interest in reversion immediately expectant upon the termination thereof.
(2) In the case of a tenancy continuing by virtue of any provision of this Act after the coming to an end of the interest in reversion immediately expectant upon the termination thereof, subsection (1) of section one hundred and thirty-nine of the Law of Property Act 1925 (which relates to the effect of the extinguishment of a reversion) shall apply as if references in the said subsection (1) to the surrender or merger of the reversion included references to the coming to an end of the reversion for any reason other than surrender or merger.
(3) Where by virtue of any provision of this Act a tenancy (in this subsection referred to as “the continuing tenancy”) is continued beyond the beginning of a reversionary tenancy which was granted (whether before or after the commencement of this Act) so as to begin on or after the date on which apart from this Act the continuing tenancy would have come to an end, the reversionary tenancy shall have effect as if it had been granted subject to the continuing tenancy.
(4) Where by virtue of any provision of this Act a tenancy (in this subsection referred to as “the new tenancy”) is granted for a period beginning on the same date as a reversionary tenancy or for a period such as to extend beyond the beginning of the term of a reversionary tenancy, whether the reversionary tenancy in question was granted before or after the commencement of this Act, the reversionary tenancy shall have effect as if it had been granted subject to the new tenancy.
(1) Any form of notice required by this Act to be prescribed shall be prescribed by regulations made by the Lord Chancellor by statutory instrument.
(2) Where the form of a notice to be served on persons of any description is to be prescribed for any of the purposes of this Act, the form to be prescribed shall include such an explanation of the relevant provisions of this Act as appears to the Lord Chancellor requisite for informing persons of that description of their rights and obligations under those provisions.
(3) Different forms of notice may be prescribed for the purposes of the operation of any provision of this Act in relation to different cases.
(4) Section twenty-three of the Landlord and Tenant Act 1927 (which relates to the service of notices) shall apply for the purposes of this Act.
(5) Any statutory instrument under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament.
Anything authorised or required by the provisions of this Act, other than subsection ... (3) of section forty, to be done at any time by, to or with the landlord, or a landlord of a specified description, shall, if at that time the interest of the landlord in question is subject to a mortgage and the mortgagee is in possession or a receiver appointed by the mortgagee or by the court is in receipt of the rents and profits, be deemed to be authorised or required to be done by, to or with the morgagee instead of that landlord.
(1) In this Act the following expressions have the meanings hereby assigned to them respectively, that is to say:—
“agricultural holding” has the same meaning as in the Agricultural Holdings Act 1986;
“development corporation” has the same meaning as in the New Towns Act 1981;
“farm business tenancy” has the same meaning as in the Agricultural Tenancies Act 1995;
“local authority” means any local authority within the meaning of the Town and Country Planning Act 1990, any National Park authority, ... the Broads Authority , the London Fire Commissioner , a joint authority established by Part 4 of the Local Government Act 1985, an economic prosperity board established under section 88 of the Local Democracy, Economic Development and Construction Act 2009 , a combined authority established under section 103 of that Act , a combined county authority established under section 9(1) of the Levelling-up and Regeneration Act 2023 or a fire and rescue authority created by an order under section 4A of the Fire and Rescue Services Act 2004;
“mortgage” includes a charge or lien and “mortgagor” and “mortgagee” shall be construed accordingly;
“notice to quit” means a notice to terminate a tenancy (whether a periodical tenancy or a tenancy for a term of years certain) given in accordance with the provisions (whether express or implied) of that tenancy;
“repairs” includes any work of maintenance, decoration or restoration, and references to repairing, to keeping or yielding up in repair and to state of repair shall be construed accordingly;
“statutory undertakers” has the same meaning as in the Town and Country Planning Act 1971, ...
“tenancy” means a tenancy created either immediately or derivatively out of the freehold, whether by a lease or underlease, by an agreement for a lease or underlease or by a tenancy agreement or in pursuance of any enactment (including this Act), but does not include a mortgage term or any interest arising in favour of a mortgagor by his attorning tenant to his mortgagee, and references to the granting of a tenancy and to demised property shall be construed accordingly;
“terms”, in relation to a tenancy, includes conditions.
(2) References in this Act to an agreement between the landlord and the tenant (except in section seventeen and subsections (1) and (2) of section thirty-eight thereof) shall be construed as references to an agreement in writing between them.
(3) References in this Act to an action for any relief shall be construed as including references to a claim for that relief by way of counterclaim in any proceedings.
70 Short title and citation, commencement and extent.
(1) This Act may be cited as the Landlord and Tenant Act 1954, and the Landlord and Tenant Act 1927, and this Act may be cited together as the Landlord and Tenant Acts 1927 and 1954.
(2) This Act shall come into operation on the first day of October, nineteen hundred and fifty-four.
(3) This Act shall not extend to Scotland or to Northern Ireland.
FIRST SCHEDULE Supplementary Provisions as to Payments for Accrued Tenant’s Repairs
Section 8.
Part I Provisions as to making of payment in lump sum
1 Subject to the provisions of this Part of this Schedule, a payment for accrued tenant’s repairs which is to be payable otherwise than by instalments shall become payable when the relevant initial repairs have been completed, unless the landlord and the tenant agree that it shall become payable wholly or in part at some other date.
2 Where it is determined by the court that a payment for accrued tenant’s repairs is to be payable otherwise than by instalments, the court may determine that any specified part of the payment shall become payable when any specified part of the relevant initial repairs has been completed.
3 A payment for accrued tenant’s repairs which is payable otherwise than by instalments, or any part of such a payment, shall be recoverable from the tenant.
4 (1) Where it has been agreed or determined that a payment for accrued tenant’s repairs should be paid otherwise than by instalments, and the period of the statutory tenancy ends before the relevant initial repairs have been begun, or at a time when they have been begun but not completed, the following provisions shall have effect.
(2) If the relevant initial repairs have not been begun and are no longer required, then notwithstanding anything in section eight of this Act no payment for accrued tenant’s repairs shall be recoverable.
(3) In any other case, the time for recovery of the payment for accrued tenant’s repairs shall be the same as if all the relevant initial repairs had been completed immediately before the end of the period of the statutory tenancy, and the amount of the payment shall be as hereinafter provided:—
(a) if the relevant initial repairs have not been begun, the amount of the payment shall be the estimated cost of the repairs or of so much thereof as is still required;
(b) if the relevant initial repairs have been begun but not completed, the amount of the payment shall be an amount equal to the expenses reasonably incurred by the landlord for the purposes of so much of the relevant initial repairs as has been carried out together (unless the remainder is no longer required) with the estimated cost of the remainder or of so much thereof as is still required:
Provided that there shall be disregarded so much (if any) of the said expenses or estimated cost as is recoverable by the landlord otherwise than from the tenant or his predecessor in title.
(4) Any question arising under this paragraph whether repairs are no longer required, whether any expenses were incurred, or reasonably incurred, by the landlord, or as to the amount of the estimated cost of any repairs shall be determined by agreement between the landlord and the tenant or by the court on the application of either of them.
(5) For the purposes of this paragraph initial repairs shall be deemed to be no longer required after the end of the period of the statutory tenancy if, and only if, it is shown that the dwelling-house, in whatever state of repair it may then be, is at or shortly after the end of that period to be pulled down, or that such structural alterations are to be made in the dwelling-house as would render those repairs valueless if they were completed.
(6) In a case falling within sub-paragraph (1) of this paragraph where a payment for accrued tenant’s repairs would, apart from this paragraph, include an amount in respect of cost incurred by the landlord in ascertaining what initial repairs are required in consequence of failure by the tenant to fulfil his obligations under the former tenancy, the following provisions shall have effect—
(a) that amount shall be recoverable notwithstanding anything in sub-paragraph (2) of this paragraph;
(b) in a case falling within sub-paragraph (3) of this paragraph the said amount shall be recoverable in addition to the amount specified in that sub-paragraph;
(c) the time for recovery of the said amount shall, as well in a case falling within sub-paragraph (2) of this paragraph as in one falling within sub-paragraph (3) thereof, be that mentioned in the said sub-paragraph (3).
5 In relation to a case where the court exercises the power conferred by paragraph 2 of this Schedule references in the last foregoing paragraph to the relevant initial repairs shall be construed as references to any such part of those repairs as is referred to in the said paragraph 2, being a part which at the material time has not been begun or, as the case may be, has been begun but not completed, and references to the payment for accrued tenant’s repairs shall be construed accordingly.
Part II Provisions as to making of payment by instalments
6 Subject to the provisions of this Part of this Schedule, where under Part I of this Act it is agreed or determined that a payment for accrued tenant’s repairs is to be payable by instalments, the instalments shall become payable at the times so agreed or determined.
7 Any such instalment becoming payable at a time falling before the end of the period of the statutory tenancy shall be payable by the tenant.
8 (1) Where the landlord is not the immediate landlord of the dwelling-house, the landlord and the immediate landlord may serve on the tenant a notice in the prescribed form requiring him to pay the instalments of the payment for accrued tenant’s repairs to the immediate landlord for transmission to the landlord.
(2) A notice under the last foregoing sub-paragraph may be revoked by a subsequent notice given to the tenant by the landlord, with or without the concurrence of the immediate landlord.
9 Any instalment becoming payable at a time when the landlord is the immediate landlord or when a notice under sub-paragraph (1) of the last foregoing paragraph is in force shall be recoverable by the immediate landlord in the like manner and subject to the like provisions as the rent . . . .
10 If the period of the statutory tenancy comes to an end before all instalments of the payment for accrued tenant’s repairs have been paid, the remaining instalments shall become payable immediately after the end of that period, shall be recoverable by the person who immediately before the end thereof was the landlord, and shall be so recoverable from the person who immediately before the end thereof was the tenant.
11 In the application of the last foregoing paragraph to a case where the period of the statutory tenancy comes to an end before the relevant initial repairs have been begun, or at a time when they have been begun but not completed, the provisions of paragraph 4 of this Schedule shall have effect (with the necessary modifications) for limiting the recovery of any remaining instalments under the last foregoing paragraph.
12 Where, during the period of the statutory tenancy and before all instalments of the payment for accrued tenant’s repairs have become payable, the interest of the landlord comes to an end or ceases to be an interest falling within paragraphs (a) and (b) of the proviso to subsection (4) of section twenty-one of this Act, he shall thereupon be entitled to recover from the person who thereupon becomes the landlord such amount (if any) as is equal to so much of the expenses reasonably incurred by the landlord—
(a) in ascertaining what initial repairs are required in consequence of failure by the tenant to fulfil his obligations under the former tenancy; and
(b) for the purposes of the relevant initial repairs;
as is recoverable from the tenant and has not been recovered.
Part III Variation of agreement or determination as to time for making payment
13 The tenant may apply to the court for the variation, on the grounds and to the extent hereinafter specified, of any agreement or determination for the making of a payment for accrued tenant’s repairs.
14 The grounds on which an agreement or determination may be varied on an application under the last foregoing paragraph are the following:—
(a) that the expenditure reasonably incurred by the landlord in carrying out the relevant initial repairs substantially exceeded the estimated cost thereof; or
(b) that the applicant is not the person who was the tenant at the time of the previous agreement or determination and that there are considerations arising out of the personal circumstances of the applicant which ought to be taken into account in determining the manner of making the payment.
15 The extent to which an agreement or determination may be so varied on an application under paragraph 13 of this Schedule is the following:—
(a) if the agreement or determination was for the making of the payment otherwise than by instalments, and the payment has not been fully made, by substituting therefor a determination that the payment or balance of the payment should be made by instalments;
(b) if the agreement or determination was for the making of a payment by instalments, by substituting for the instalments agreed or determined instalments of such smaller amounts, payable at such times, as may be determined by the court.
16 Where an agreement or determination is varied under this Part of this Schedule, the foregoing provisions of this Schedule shall thereafter apply with the necessary modifications.
Part IV Supplementary
17 Any failure by the tenant to make a payment for accrued tenant’s repairs, or any part or instalment of such a payment, at the time when it becomes due shall be treated as a breach of the obligations of the tenancy for the purposes of Case 1 in Schedule 15 to the Rent Act (which relates to recovery of possession where the rent has not been paid or any other obligation of the tenancy has not been performed).
18 Where any sum in respect of a payment for accrued tenant’s repairs has been recovered in advance of the carrying out of the relevant initial repairs, then in any case where paragraph 4 or 11 of this Schedule applies such repayment shall be made as may be just.
19 In this Schedule the expression “immediate landlord” means the person who as respects the dwelling-house is the landlord of the tenant for the purposes of the Rent Act and the expression “relevant initial repairs” means the repairs in respect of which the payment for accrued tenant’s repairs is payable.
SECOND SCHEDULE Further Provisions as to Repair where Tenant retains Possession
Section 8.
Failure of landlord to carry out initial repairs
1 (1) Where—
(a) the tenant retains possession of the dwelling-house by virtue of subsection (1) of section six of this Act, and
(b) by virtue of an agreement or of a determination of the court the landlord is required to carry out initial repairs to the dwelling-house,
then if on an application made by the tenant during the period of the statutory tenancy the court is satisfied that the initial repairs have not been carried out within a reasonable time in accordance with the agreement or determination the court may by order direct that, until the discharge of the order as hereinafter provided or the end of the period of the statutory tenancy, whichever first occurs, the rent payable in respect of the dwelling-house shall be reduced to such amount specified in the order as the court may think just having regard to the extent to which the landlord has failed to comply with the agreement or determination . . .
(2) Where the court under the last foregoing sub-paragraph orders a reduction of rent, the court may further order that during the same period any instalments of a payment for accrued tenant’s repairs shall be suspended.
(3) An order under this paragraph may include a provision that the reduction of rent shall take effect from a specified date before the making of the order, being such date as the court thinks just having regard to the landlord’s delay in carrying out the initial repairs; and where an order contains such a provision then, in addition to the reduction ordered by virtue of sub-paragraph (1) of this paragraph, such number of payments of rent next falling due after the date of the order shall be reduced by such amount as may be specified in the order for the purpose of giving effect to the said provision.
2 Where an order under paragraph 1 of this Schedule is in force, and on an application by the landlord the court is satisfied that the initial repairs have been carried out in accordance with the agreement or with the determination of the court, as the case may be, the court shall discharge the order, but without prejudice to the operation thereof as respects any period before the date on which it is discharged or to any reduction ordered by virtue of sub-paragraph (3) of the last foregoing paragraph.
3 If, while an order under paragraph 1 of this Schedule is in force, it is agreed between the landlord and the tenant that the initial repairs in question have been carried out as mentioned in the last foregoing paragraph, the order shall be discharged by virtue of that agreement in the like manner as if it had been discharged by the court.
Failure of tenant to carry out initial repairs
4 Where, by virtue of an agreement or of a determination of the court, the tenant is required to carry out initial repairs to the dwelling-house, failure by the tenant to carry out the repairs within a reasonable time in accordance with the agreement or determination shall be treated as a breach of the obligations of the tenancy for the purposes of Case 1 in Schedule 15 to the Rent Act (which relates to recovery of possession where the rent has not been paid or any other obligation of the tenancy has not been performed).
Expenses and receipts: mortgages, settlements, etc.
5 Any amount paid by a mortgagee in respect of expenses incurred in carrying out initial repairs in accordance with an agreement or determination under Part I of this Act, or in respect of any payment made in pursuance of a liability imposed by paragraph 12 of the First Schedule to this Act, shall be treated as if it were secured by the mortgage, with the like priority and with interest at the same rate as the mortgage money, so however that (without prejudice to the recovery of interest) any such amount shall not be recoverable from the mortgagor personally.
6 The purposes authorised for the application of capital money by section seventy-three of the Settled Land Act 1925 ... ..., and the purposes authorised by section seventy-one of the Settled Land Act 1925 ... ..., as purposes for which moneys may be raised by mortgage, shall include the payment of any such expenses as are mentioned in the last foregoing paragraph and the making of any such payment as is mentioned in that paragraph:
Provided that the like provisions shall have effect as to the repayment of capital money applied by virtue of this paragraph as have effect in the case of improvements authorised by Part II of the Third Schedule to the Settled Land Act 1925 (which specifies improvements the cost of which may be required to be replaced out of income).
Record of state of repair of dwelling-house
7 A landlord’s notice proposing a statutory tenancy may contain a requirement that if the tenant retains possession by virtue of subsection (1) of section six of this Act a record shall be made of the state of repair of the dwelling-house.
8 Where the landlord gives such a notice which does not contain such a requirement, then if the tenant elects to retain possession his notification in that behalf may include a requirement that a record shall be made of the state of repair of the dwelling-house.
9 Where the tenant retains possession of the dwelling-house by virtue of subsection (1) of section six of this Act and either the landlord or the tenant has made such a requirement as is mentioned in either of the two last foregoing paragraphs, the record of the state of repair of the dwelling-house shall be made as soon as may be after the completion of any initial repairs to be carried out or, in the absence of any agreement or determination requiring the carrying out of initial repairs, as soon as may be after the beginning of the period of the statutory tenancy.
10 Any record required to be made under the last foregoing paragraph shall be made by a person appointed, in default of agreement between the landlord and the tenant, by the President of the Royal Institution of Chartered Surveyors.
11 The cost of making any such record as aforesaid shall, in default of agreement between the landlord and the tenant, be borne by them in equal shares.
THIRD SCHEDULE Grounds for Possession on Termination of Tenancy
Sections 12, 13.
1 The grounds referred to in paragraph (b) of subsection (1) of section twelve of this Act are the following, that is to say:—
(a) that suitable alternative accommodation will be available for the tenant at the date of termination of the tenancy;
(b) that the tenant has failed to comply with any term of the tenancy as to payment of rent or rates or as to insuring or keeping insured any premises;
(c) that the tenant or a person residing or lodging with him or being his sub-tenant has been guilty of conduct which is a nuisance or annoyance to adjoining occupiers, or has been convicted of using any premises comprised in the tenancy or allowing such premises to be used for an immoral or illegal purpose and, where the person in question is a lodger or sub-tenant, that the tenant has not taken such steps as he ought reasonably to have taken for the removal of the lodger or sub-tenant;
(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(e) that premises comprised in the tenancy, and consisting of or including the relevant premises, are reasonably required by the landlord for occupation as a residence for—
(i) himself,
(ii) any son or daughter of his over eighteen years of age,
(iii) his father or mother, or
(iv) the father, or mother, of his spouse or civil partner,
and (if the landlord is not the immediate landlord) that he will be the immediate landlord at the date of termination:
Provided that the court shall not make an order under section thirteen of this Act on the grounds specified in sub-paragraph (e) of this paragraph—
if the interest of the landlord, or an interest which has merged in that interest and but for the merger would be the interest of the landlord, was purchased or created after the 18th February 1966; or
if the court is satisfied that having regard to all the circumstances of the case, including the question whether other accommodation is available for the landlord or the tenant, greater hardship would be caused by making the order than by refusing to make it.
2 Part IV of Schedule 15 to the Rent Act (which relates to the circumstances in which suitable accommodation is to be deemed to be available for the tenant) shall apply for the purposes of this Schedule as it applies for the purposes of section 98(1)(a) of that Act.
FOURTH SCHEDULE Modifications of Part I in relation to Periodical Tenancies
Section 19.
1 In relation to such a tenancy as is mentioned in subsection (2) of section nineteen of this Act, Part I of this Act shall have effect subject to the following provisions of this Schedule.
2 For subsection (6) of section two there shall be substituted the following:—
(6) In this Part of this Act the expression “term date”, in relation to any such tenancy as is mentioned in subsection (2) of section nineteen of this Act, means the first date after the commencement of this Act on which apart from this Act the tenancy could have been brought to an end by notice to quit given by the landlord.
3 For subsection (1) of section five there shall be substituted the following:—
(1) A tenancy to which section one of this Act applies may be brought to an end at the term date thereof by notice in writing given by the tenant to the immediate landlord.
The length of any such notice shall be not less than one month nor less than the length of the notice by which the tenant could apart from this Act have brought the tenancy to an end at the term date thereof.
4 Notwithstanding anything in subsection (2) of section three, where by virtue of subsection (1) of that section the tenancy is continued after the term date thereof the provisions of Part I as to the termination of a tenancy by notice shall have effect in substitution for and not in addition to any such provisions included in the terms on which the tenancy had effect before the term date thereof.
5 Where the tenancy is not terminated under the provisions of Part I of this Act at the term date thereof, then, whether or not it would have continued after that date apart from this Act, it shall be treated for the purposes of this Act as being continued by virtue of subsection (1) of section three thereof.
FIFTH SCHEDULE Provisions for purposes of Part I where Immediate Landlord is not the Freeholder
Section 21.
Definitions
1 (1) In this Schedule the following expressions have the meanings hereby assigned to them in relation to a tenancy (in this Schedule referred to as “the relevant tenancy”), that is to say:—
“the competent landlord” means the person who in relation to the relevant tenancy is for the time being the landlord (as defined by section twenty-one of this Act) for the purposes of Part I of this Act;
“mesne landlord” means a tenant whose interest is intermediate between the relevant tenancy and the interest of the competent landlord; and
“superior landlord”, except in paragraph 9 of this Schedule, means a person (whether the owner of the fee simple or a tenant) whose interest is superior to the interest of the competent landlord.
(2) References in this Schedule to “other landlords” are references to persons who are either mesne landlords or superior landlords.
Acts of competent landlord binding on other landlords
2 Any notice given by the competent landlord under subsection (1) of section four of this Act, any agreement made under Part I of this Act between that landlord and the tenant under the relevant tenancy, and any determination of the court under the said Part I in proceedings between that landlord and that tenant, shall bind the interest of every other landlord (if any).
Provisions as to consent of other landlords to acts of competent landlord
3 (1) Where in the four next following paragraphs reference is made to other landlords or to mesne landlords, the reference shall be taken not to include a mesne landlord whose interest is due to expire within the period of two months beginning with the relevant date or is terminable within that period by notice to quit given by his landlord.
(2) In this paragraph the expression “the relevant date” means—
(a) if the term date of the relevant tenancy has not passed, that date;
(b) if that date has passed, and no notice has been given under subsection (1) of section four of this Act to terminate the relevant tenancy, the earliest date at which that tenancy could be brought to an end by such a notice;
(c) if such a notice has been given, the date of termination specified in the notice.
4 (1) If a notice is given by the competent landlord under subsection (1) of section four of this Act, or an agreement under Part I of this Act is made with the tenant by that landlord, without the written consent of every other landlord (if any), any other landlord whose written consent has not been given thereto shall, subject to the next following paragraph, be entitled to compensation from the competent landlord for any loss arising in consequence of the giving of the notice or the making of the agreement.
(2) The amount of any compensation under this paragraph shall, in default of agreement, be determined by the court on the application of the person claiming it.
5 The competent landlord may serve on any other landlord a notice in the prescribed form requiring him to consent to the giving or making of any such notice or agreement as aforesaid; and if within one month after the service of a notice under this paragraph—
(a) the consent has not been given, or
(b) conditions have been imposed on the giving of the consent which are in the opinion of the court unreasonable in all the circumstances,
the court, on an application by the competent landlord, may if it thinks fit order that the other landlord shall be deemed to have consented, either without qualification or subject to such conditions (including conditions as to the modification of the proposed notice or agreement or as to the payment of compensation by the competent landlord) as may be specified in the order.
6 (1) It may be made a condition either—
(a) of the giving of consent by a person whose consent is required under paragraph 4 of this Schedule, or
(b) of the making of an order under the last foregoing paragraph, that the initial repairs which the competent landlord will agree to carry out, or which, as the case may be, he will specify in accordance with subsection (1) of section nine of this Act as repairs which he is willing to carry out, shall include such repairs as may be specified in the consent or order.
(2) In so far as any cost reasonably incurred by the competent landlord in carrying out repairs specified in accordance with the last foregoing sub-paragraph is not recovered by way of payment for accrued tenant’s repairs and is not recoverable (apart from this sub-paragraph) otherwise than by way of such payment, it shall be recoverable by the competent landlord from the person whose consent was or is deemed to have been given subject to the condition or (if he is dead) from his personal representatives as a debt due from him at the time of his death.
7 (1) Where under Part I of this Act the competent landlord is required by an agreement, or by a determination of the court, to carry out initial repairs to any premises, he may serve on any mesne landlord a notice requiring him to pay to the competent landlord a contribution towards the cost reasonably incurred by the competent landlord in carrying out those repairs, if and in so far as that cost is not recovered by way of payment for accrued tenant’s repairs and is not recoverable (apart from this sub-paragraph) otherwise than by way of such payment.
(2) Where a notice has been served under the last foregoing sub-paragraph, then in default of agreement between the competent landlord and the mesne landlord on whom the notice was served the court may order the mesne landlord to pay such a contribution as aforesaid.
(3) A contribution ordered under this paragraph shall be such as the court determines to be reasonable having regard to the difference between the rent under the relevant tenancy and the rent which, if the tenant retains possession, will be recoverable . . . , during the period of the statutory tenancy.
Failure of competent landlord to carry out initial repairs
8 Where, in consequence of the failure of the competent landlord to carry out initial repairs, the amount of any payment of rent is reduced under paragraph 1 of the Second Schedule to this Act, and the competent landlord is not the immediate landlord of the tenant, the person who is for the time being the immediate landlord shall be entitled to recover from the competent landlord the amount of the reduction.
Relief in proceedings by superior landlord
9 (1) Where in the case of a tenancy to which section one of this Act applies—
(a) the interest of the immediate landlord is itself a tenancy (in this paragraph referred to as “the mesne tenancy”), and
(b) a superior landlord has brought proceedings to enforce a right of re-entry or forfeiture in respect of a failure to comply with any terms of the mesne tenancy or of a superior tenancy having effect subject to the mesne tenancy, and
(c) the court makes an order for the recovery by the superior landlord of possession of the property comprised in the tenancy,
the tenant shall not be required to give up possession of that property unless he has been a party to the proceedings or has been given notice of the order; and the provisions of the next following sub-paragraph shall have effect where he has been such a party or has been given such a notice:
Provided that where the tenant has been a party to the proceedings the said provisions shall not apply unless he has at any time before the making of the order made application in the proceedings for relief under this paragraph.
(2) If the tenant within fourteen days after the making of the order, or where he has not been a party to the proceedings, within fourteen days after the said notice, gives notice in writing to the superior landlord that he desires that the following provisions of this sub-paragraph shall have effect and lodges a copy of the notice in the court—
(a) the tenant shall not be required to give up possession of the said property but the tenancy mentioned in head (b) of the last foregoing sub-paragraph shall be deemed as between the tenant and the superior landlord to have been surrendered on the date of the order; and
(b) if the term date of the tenant’s tenancy would otherwise fall later, it shall be deemed for the purposes of Part I of this Act to fall at the expiration of seven months from the making of the order.
(3) Nothing in the foregoing provisions of this paragraph shall prejudice the operation of any order for the recovery of possession from the tenant under the mesne tenancy, or from the tenant under any superior tenancy having effect subject to the mesne tenancy.
(4) Subsections (4), (6) and (7) of section sixteen of this Act shall with the necessary modifications apply for the purposes of this paragraph.
Relief for mesne landlord against damages for breach of covenant
10 (1) The provisions of the next following sub-paragraph shall have effect where, in the case of a tenancy to which section one of this Act applies,—
(a) the competent landlord is not the immediate landlord, and
(b) the competent landlord has brought proceedings against a mesne landlord to enforce a right to damages in respect of a failure to comply with any terms of the mesne landlord’s tenancy, and
(c) the mesne landlord has made application in the proceedings for relief under this paragraph, and
(d) the court makes an order for the payment by the mesne landlord of any such damages as aforesaid.
(2) The operation of the order shall be suspended for a period of fourteen days from the making thereof, and if before the end of that period the mesne landlord gives notice in writing to the competent landlord that he desires that the provisions of heads (a) and (b) of this sub-paragraph shall have effect, and lodges a copy of the notice in the court—
(a) the order shall not be enforceable except if and in so far as it provides for the payment of costs, and
(b) the interest of the mesne landlord (unless it has then come to an end) shall be deemed to be surrendered, and his rights and liabilities thereunder to be extinguished, as from the date of the giving of the notice.
(3) Subsections (4) to (7) of section sixteen of this Act shall with the necessary modifications apply for the purposes of this paragraph.
Provisions as to liabilities under tenants’ covenants in superior leases
11 (1) Where subsection (1) of section ten of this Act applies, any terms to which this paragraph applies shall cease to have effect in so far as they relate to the premises constituting the dwelling-house, and any liability of the competent landlord or any mesne landlord or of any predecessor in title of the competent landlord or of any mesne landlord, under any such terms, in so far as it related to those premises and was a liability subsisting at the termination of the relevant tenancy, shall be deemed to have been extinguished on the termination of that tenancy.
(2) This paragraph applies to any terms of any tenancy owned by the competent landlord or by any other landlord, whether to be performed during that tenancy or on or after the expiration or determination thereof, except any such terms as are mentioned in paragraph (a) or (b) of the proviso to subsection (1) of section ten of this Act:
Provided that where any term to which this paragraph applies relates both to the dwelling-house and to other premises, nothing in this paragraph shall affect its operation in relation to the other premises.
(3) Notwithstanding anything in sub-paragraph (1) of this paragraph, if the interest of the competent landlord, being a tenancy, or the interest of any mesne landlord, has not come to an end by the end of the period of the statutory tenancy, and the terms on which that interest was held included an obligation to repair or maintain the dwelling-house or the dwelling-house and other premises, then as from the end of the period of the statutory tenancy the instrument creating the interest of the competent landlord or mesne landlord shall be deemed to contain a covenant with the grantor of the interest that the grantee of the interest will at all times maintain the dwelling-house in a state of repair no less good than that in which it was after the completion of any initial repairs to be carried out thereon in accordance with the provisions of Part I of this Act, and will yield up possession of the dwelling-house in such a state on the coming to an end of the interest of the said landlord.
(4) Where, in a case falling within sub-paragraph (1) of this paragraph, the competent landlord satisfies the court—
(a) that the obligations under the tenancy which in relation to him is the immediate mesne tenancy differ from the obligations under the relevant tenancy, and
(b) that if the obligations under the relevant tenancy had been the same as those under the first-mentioned tenancy he would have been entitled to recover any amount by way of payment for accrued tenant’s repairs which he is not entitled to recover, he shall be entitled to recover that amount from the tenant under the first-mentioned tenancy, or, if that tenancy has come to an end, from the person who was the tenant thereunder immediately before it came to an end.
(5) Where in accordance with the last foregoing sub-paragraph, or with that sub-paragraph as applied by the following provisions of this sub-paragraph, any sum is recoverable from a person, the last foregoing sub-paragraph shall with the necessary modifications apply as between him and the person entitled to the interest (if any) which in relation to him is the immediate mesne tenancy or, if such an interest formerly subsisted but has come to an end, as between him and the person last entitled to that interest.
(6) In this paragraph the expression “the immediate mesne tenancy”, in relation to the competent landlord or to a mesne landlord, means the tenancy on which his interest in those premises is immediately expectant.
SIXTH SCHEDULE Provisions for Purposes of Part II where Immediate Landlord is not the Freeholder
Section 44.
Definitions
1 In this Schedule the following expressions have the meanings hereby assigned to them in relation to a tenancy (in this Schedule referred to as “the relevant tenancy”), that is to say:—
“the competent landlord” means the person who in relation to the tenancy is for the time being the landlord (as defined by section 44 of this Act) for the purposes of Part II of this Act;
“mesne landlord” means a tenant whose interest is intermediate between the relevant tenancy and the interest of the competent landlord; and
“superior landlord” means a person (whether the owner of the fee simple or a tenant) whose interest is superior to the interest of the competent landlord.
Power of court to order reversionary tenancies
2 Where the period for which in accordance with the provisions of Part II of this Act it is agreed or determined by the court that a new tenancy should be granted thereunder will extend beyond the date on which the interest of the immediate landlord will come to an end, the power of the court under Part II of this Act to order such a grant shall include power to order the grant of a new tenancy until the expiration of that interest and also to order the grant of such a reversionary tenancy or reversionary tenancies as may be required to secure that the combined effects of those grants will be equivalent to the grant of a tenancy for that period; and the provisions of Part II of this Act shall, subject to the necessary modifications, apply in relation to the grant of a tenancy together with one or more reversionary tenancies as they apply in relation to the grant of one new tenancy.
Acts of competent landlord binding on other landlords
3 (1) Any notice given by the competent landlord under Part II of this Act to terminate the relevant tenancy, and any agreement made between that landlord and the tenant as to the granting, duration, or terms of a future tenancy, being an agreement made for the purposes of the said Part II, shall bind the interest of any mesne landlord notwithstanding that he has not consented to the giving of the notice or was not a party to the agreement.
(2) The competent landlord shall have power for the purposes of Part II of this Act to give effect to any agreement with the tenant for the grant of a new tenancy beginning with the coming to an end of the relevant tenancy, notwithstanding that the competent landlord will not be the immediate landlord at the commencement of the new tenancy, and any instrument made in the exercise of the power conferred by this sub-paragraph shall have effect as if the mesne landlord had been a party thereto.
(3) Nothing in the foregoing provisions of this paragraph shall prejudice the provisions of the next following paragraph.
Provisions as to consent of mesne landlord to acts of competent landlord
4 (1) If the competent landlord, not being the immediate landlord, gives any such notice or makes any such agreement as is mentioned in sub-paragraph (1) of the last foregoing paragraph without the consent of every mesne landlord, any mesne landlord whose consent has not been given thereto shall be entitled to compensation from the competent landlord for any loss arising in consequence of the giving of the notice or the making of the agreement.
(2) If the competent landlord applies to any mesne landlord for his consent to such a notice or agreement, that consent shall not be unreasonably withheld, but may be given subject to any conditions which may be reasonable (including conditions as to the modification of the proposed notice or agreement or as to the payment of compensation by the competent landlord).
(3) Any question arising under this paragraph whether consent has been unreasonably withheld or whether any conditions imposed on the giving of consent are unreasonable shall be determined by the court.
Consent of superior landlord required for agreements affecting his interest
5 An agreement between the competent landlord and the tenant made for the purposes of Part II of this Act in a case where—
(a) the competent landlord is himself a tenant, and
(b) the agreement would apart from this paragraph operate as respects any period after the coming to an end of the interest of the competent landlord,
shall not have effect unless every superior landlord who will be the immediate landlord of the tenant during any part of that period is a party to the agreement.
Withdrawal by competent landlord of notice given by mesne landlord
6 Where the competent landlord has given a notice under section 25 of this Act to terminate the relevant tenancy and, within two months after the giving of the notice, a superior landlord—
(a) becomes the competent landlord; and
(b) gives to the tenant notice in the prescribed form that he withdraws the notice previously given;
the notice under section 25 of this Act shall cease to have effect, but without prejudice to the giving of a further notice under that section by the competent landlord.
Duty to inform superior landlords
7 If the competent landlord’s interest in the property comprised in the relevant tenancy is a tenancy which will come or can be brought to an end within sixteen months (or any further time by which it may be continued under section 36(2) or section 64 of this Act) and he gives to the tenant under the relevant tenancy a notice under section 25 of this Act to terminate the tenancy or is given by him a notice under section 26(3) of this Act:—
(a) the competent landlord shall forthwith send a copy of the notice to his immediate landlord; and
(b) any superior landlord whose interest in the property is a tenancy shall forthwith send to his immediate landlord any copy which has been sent to him in pursuance of the preceding sub-paragraph or this sub-paragraph.
Section 54A
Part 1 Key terms
“Business tenancy”
1 (1) A tenancy is a “business tenancy” at a particular time if, at that time, Part 2 of this Act—
(a) applies to the tenancy, or
(b) has the potential to apply to the tenancy.
(2) For that purpose, Part 2 has the potential to apply to the tenancy at a particular time if, at that time—
(a) Part 2 cannot apply to the tenancy because—
(i) none of the property comprised in the tenancy is or includes premises which are occupied by the tenant, or
(ii) property comprised in the tenancy is or includes premises which are occupied by the tenant, but none of those premises are so occupied for the purposes of a business carried on by the tenant or for those and other purposes,
(b) the terms of the tenancy include terms (the “permitted business use terms”) which would permit the tenant to occupy the premises for the purposes of a business carried on by the tenant (whether the terms permit occupation for the purposes of business generally, a specific business or a specific kind of business) or for those and other purposes, and
(c) if the tenant were to occupy the premises in accordance with the permitted business use terms (and taking into account all other circumstances), Part 2 of this Act would apply to the tenancy.
(3) For the purposes of sub-paragraph (2)(b), terms of the tenancy which—
(a) would prohibit the tenant from occupying the premises for some purposes, but
(b) would not prohibit the tenant from occupying the premises for other purposes,
are to be regarded as terms which would permit the tenant to occupy the premises for the purposes which are not prohibited.
(4) Sub-paragraph (2) must be construed as one with section 23(1).
“Business tenancy with a rent review”
2 (1) A tenancy is a “business tenancy with a rent review” at a particular time if, at that time—
(a) it is a business tenancy, and
(b) it is subject to rent review terms (whether contained in the instrument creating the tenancy or not).
(2) In this Schedule “rent review terms” means terms under which an amount of rent payable under the tenancy will or may change during the term of the tenancy (“rent under review”).
Part 2 Triggering and operation of rent reviews
Application of this Part
3 (1) This Part of this Schedule applies to a tenancy at a particular time if—
(a) at that time it is a business tenancy with a rent review,
(b) the tenancy was—
(i) granted, or
(ii) varied so that it is subject to rent review terms,
after this Schedule came into force, and
(c) that grant or variation was not made under protected pre-commencement arrangements.
(2) For that purpose “protected pre-commencement arrangements” means arrangements that were entered into before this Schedule came into force.
(3) But arrangements under which the tenancy was granted are not protected pre-commencement arrangements if—
(a) the tenancy is a new tenancy within the meaning of Schedule 7B,
(b) the arrangements are a tenancy renewal arrangement within the meaning of Schedule 7B, and
(c) the tenancy renewal arrangement was entered into on or after 17 March 2026,
(and see paragraph 3(2) of Schedule 7B for the meaning of “new tenancy” and “tenancy renewal arrangement”).
Tenant to have power to trigger a rent review
4 (1) This paragraph applies if—
(a) an action is necessary for a particular rent review to be initiated (a “trigger action”), and
(b) the rent review terms, or any other terms (whether contained in the instrument creating the tenancy or not), do not allow the tenant to take the trigger action.
(2) The tenant may initiate the particular rent review by giving the landlord notice in writing.
(3) Notice under sub-paragraph (2) may not be given after the time when trigger action may be taken.
Tenant to have power to take action to enable rent review to operate effectively
5 (1) This paragraph applies if—
(a) an action is necessary for a particular rent review to operate effectively (an “operational action”), and
(b) the rent review terms, or any other terms (whether contained in the instrument creating the tenancy or not), do not allow the tenant to take the operational action.
(2) The tenant may take the operational action.
(3) If the tenant takes the operational action, the tenant must give the landlord notice in writing of the action within the period of seven days beginning with the day on which the action was taken.
Part 3 Rent review terms that are of no effect
Application of this Part
6 (1) This Part of this Schedule applies to a tenancy at a particular time if—
(a) at that time it is a business tenancy with a rent review,
(b) at that time the rent review terms—
(i) do not specify new passing rent, and
(ii) include elements 1 and 2,
(c) the tenancy was—
(i) granted, or
(ii) varied so that it is subject to rent review terms that do not specify the new passing rent and include elements 1 and 2,
after this Schedule came into force, and
(d) that grant or variation was not made under protected pre-commencement arrangements.
(2) For that purpose “protected pre-commencement arrangements” means arrangements that were entered into before this Schedule came into force.
(3) But arrangements under which the tenancy was granted are not protected pre-commencement arrangements if—
(a) the tenancy is a new tenancy within the meaning of Schedule 7B,
(b) the arrangements are a tenancy renewal arrangement within the meaning of Schedule 7B, and
(c) the tenancy renewal arrangement was entered into on or after 17 March 2026,
(and see paragraph 3(2) of Schedule 7B for the meaning of “new tenancy” and “tenancy renewal arrangement”).
Rent review terms that “do not specify new passing rent”
7 Rent review terms “do not specify new passing rent” if they are such that an amount of rent under review that will be payable at a time during the term of the tenancy (the “new passing rent”)—
(a) is not known, and
(b) cannot be determined,
at the time when the tenancy is granted or varied so that it includes the terms.
Elements 1 and 2
8 (1) This paragraph sets out elements 1 and 2.
(2) Element 1: an amount of rent (the “reference amount”) is determined by reference to—
(a) the effect of inflation or any other index or multiplier on the rent,
(b) the amount of either or both of the following—
(i) actual rent for premises;
(ii) a hypothetical market rent, or other notional rent, for premises, or
(c) the amount of the tenant’s turnover.
(3) The premises for which rent falling within sub-paragraph (2)(b) is, or is assumed to be, payable may be either or both of the following—
(a) the premises demised by the tenancy which is subject to the rent review terms;
(b) other premises (whether real or hypothetical).
(4) The reference in this paragraph to the amount of a notional rent for premises includes an amount calculated in accordance with the rent review terms on the basis of actual or assumed information or other assumptions.
(5) Element 2: the amount of the new passing rent—
(a) will be different from the reference amount, or
(b) could be different from the reference amount (whether or not the amount could, alternatively, be the reference amount).
Amount of new passing rent to be larger than reference amount
9 (1) This paragraph applies in relation to a particular rent review if the amount of the new passing rent determined in accordance with the rent review terms would be larger than the reference amount.
(2) That includes cases where the amount of the new passing rent would be—
(a) smaller than the rent under review, but
(b) still larger than the reference amount.
(3) The rent review terms are of no effect to the extent that they would result in the new passing rent being larger than the reference amount.
(4) The amount of the new passing rent is instead to be the same as the reference amount.
Exceptions
10 (1) The Secretary of State may, by regulations, provide for exceptions from paragraph 9 (whether an exception relates to the paragraph generally or to an aspect of the paragraph).
(2) Regulations under this paragraph—
(a) may include transitional or saving provision;
(b) may make different provision for different purposes;
(c) are to be made by statutory instrument;
(d) may not be made unless a draft of the statutory instrument containing the regulations has been laid before Parliament and approved by a resolution of each House of Parliament.
Part 4 Sub-tenancy required to include rent review terms that would be of no effect
Application of this Part
11 (1) This Part of this Schedule applies to a tenancy (the “superior tenancy”) at a particular time if, at that time—
(a) the superior tenancy is a business tenancy,
(b) the superior tenancy requires or permits the grant of a sub-tenancy (the “authorised sub-tenancy”),
(c) the authorised sub-tenancy would, at the time of its grant, be a business tenancy with a rent review, and
(d) either—
(i) the superior tenancy requires the authorised sub-tenancy to include rent review terms, and that requirement can only be complied with by the inclusion of rent review terms which (on one or more particular rent reviews) would produce, or would be capable of producing, the result that is prohibited by paragraph 9(3), or
(ii) the superior tenancy permits the authorised sub-tenancy to include rent review terms, but rent review terms can only be within that permission if (on one or more particular rent reviews) they would produce, or would be capable of producing, the result that is prohibited by paragraph 9(3).
(2) But this Part applies to the superior tenancy only—
(a) if the superior tenancy was—
(i) granted, or
(ii) varied so that it is subject to rent review terms that do not specify new passing rent and include elements 1 and 2,
before this Schedule comes into force, or
(b) if the superior tenancy is—
(i) granted, or
(ii) varied so that it is subject to rent review terms that do not specify new passing rent and include elements 1 and 2,
after this Schedule comes into force and the grant or variation is made under arrangements entered into before then.
Modification of terms of superior tenancy
12 (1) The superior tenancy has effect after this Schedule comes into force as if it requires, or as the case may be permits, the authorised sub-tenancy to include rent review terms of any kind which (on each particular rent review) would not produce, and would not be capable of producing, the result that is prohibited by paragraph 9(3).
(2) The actual rent review terms that are to be included in a particular authorised sub-tenancy are to be—
(a) agreed by the persons who are to be the landlord and tenant under that sub-tenancy, or
(b) determined in such other manner as they may agree.
(3) Accordingly, the landlord under the superior tenancy may not require the inclusion of particular rent review terms in the authorised sub-tenancy (unless that is what is agreed by the persons who are to be the landlord and tenant under the sub-tenancy).
(4) This paragraph does not prevent a superior tenancy from being varied or modified by the parties to it (and accordingly sub-paragraphs (1) to (3) are subject to any such variation or modification).
Interpretation
13 (1) The following provision applies for the purposes of this Part of this Schedule.
(2) The superior tenancy permits the grant of a sub-tenancy, or the inclusion of particular rent review terms in a sub-tenancy, if granting the sub-tenancy, or including those terms, would not breach the terms of the superior tenancy.
(3) References to the superior tenancy, and references to the terms of the superior tenancy, include references to—
(a) the terms of any agreement relating to the superior tenancy, and
(b) any document or communication from a party to the superior tenancy which gives or refuses consent for the grant of a category or description of sub-tenancy.
(4) “Superior tenancy” has the meaning given in paragraph 11(1).
(5) “Sub-tenancy” means a tenancy that is inferior to the superior tenancy (whether or not it is immediately inferior to that tenancy).
(6) The “result that is prohibited by paragraph 9(3)” means the result that the new passing rent is larger than the reference amount.
Part 5 General provision
Anti-avoidance
14 An agreement (whether contained in the instrument creating the tenancy or not) is void if, or to the extent that, it purports to require the tenant to make a payment in respect of any difference in an amount of rent which results from the operation of any other provision of this Schedule.
Interpretation
15 (1) In this Schedule—
“business tenancy” has the meaning given in paragraph 1;
“business tenancy with a rent review” has the meaning given in paragraph 2.
(2) In this Schedule, in relation to a business tenancy with a rent review—
“elements 1 and 2” means element 1 and element 2 set out in paragraph 8;
“inflation” means a change in prices or costs (including a change in certain kinds of prices or costs) whether or not calculated by an official index; and here “prices or costs” includes rents;
“new passing rent” has the meaning given in paragraph 7;
“particular rent review” means a particular occasion when the relevant rent review terms operate or are to operate;
“reference amount” has the meaning given in paragraph 8(2);
“rent review terms” has the meaning given in paragraph 2(2);
“rent under review” has the meaning given in paragraph 2(2).
(3) A reference in this Schedule to rent review terms that do not specify new passing rent has the meaning given in paragraph 7.
Schedule 7B Arrangements for renewal of tenancies: prohibited terms
Section 54A
Application of this Schedule
1 This Schedule applies at a particular time if, at that time, conditions A to F are met.
Condition A: a business tenancy
2 (1) Condition A is met if Part 2 of this Act—
(a) applies to the tenancy, or
(b) has the potential to apply to the tenancy.
(2) In the following paragraphs of this Schedule—
(a) the tenancy to which Part 2 applies, or has the potential to apply, is referred to as the “existing tenancy”;
(b) the premises let under the existing tenancy are referred to as the “relevant premises”.
(3) For the purposes of this paragraph, Part 2 has the potential to apply to the existing tenancy if—
(a) Part 2 cannot apply to the existing tenancy because—
(i) none of the relevant premises are occupied by the tenant, or
(ii) the relevant premises are or include premises which are occupied by the tenant, but none of those premises are so occupied for the purposes of a business carried on by the tenant or for those and other purposes,
(b) the terms of the tenancy include terms (the “permitted use terms”) which would permit the tenant to occupy relevant premises for the purposes of a business carried on by the tenant (whether the terms permit occupation for the purposes of business generally, a specific business or a specific kind of business) or for those and other purposes, and
(c) if the tenant were to occupy relevant premises in accordance with the permitted use terms (and taking into account all other circumstances), Part 2 of this Act would apply to the tenancy.
(4) For the purposes of sub-paragraph (3)(b), terms of the existing tenancy which—
(a) would prohibit the tenant from occupying relevant premises for some purposes, but
(b) would not prohibit the tenant from occupying relevant premises for other purposes,
are to be regarded as terms which would permit the tenant to occupy relevant premises for the purposes which are not prohibited.
(5) Sub-paragraph (3) must be construed as one with section 23(1).
Condition B: a tenancy renewal arrangement
3 (1) Condition B is met if the tenant under the existing tenancy is a party to a tenancy renewal arrangement.
(2) In this Schedule—
“new tenancy” means a new tenancy of the whole or a part of the relevant premises;
“tenancy renewal arrangement” means an arrangement under which the tenant under the existing tenancy—
can require the landlord or another person to grant a new tenancy, or
can be required by the landlord or another person to take a new tenancy.
Condition C: tenancy renewal arrangement on or after 17 March 2026
4 Condition C is met if the tenancy renewal arrangement is entered into on or after 17 March 2026.
Condition D: initial rent not known
5 Condition D is met if the rent payable at the start of the term of the new tenancy (the “initial rent”)—
(a) is not known, and
(b) cannot be determined,
at the time when the tenancy renewal arrangement is entered into.
Condition E: terms for determining the initial rent
6 Condition E is met if the tenancy renewal arrangement is subject to terms for determining the initial rent (the “rent determination terms”) (whether or not those terms are included in the same instrument as the tenancy renewal arrangement).
Condition F: method for determining the initial rent
7 (1) Condition F is met if the rent determination terms include elements 1 and 2 (whether or not they include any other elements).
(2) Element 1: an amount of rent (the “reference amount”) is determined by reference to—
(a) the effect of inflation or any other index or multiplier on the rent under the existing tenancy,
(b) the amount of either or both of the following—
(i) actual rent for premises;
(ii) a hypothetical market rent, or other notional rent, for premises, or
(c) the amount of the tenant’s turnover.
(3) The premises for which rent falling within sub-paragraph (2)(b) is payable may be either or both of the following—
(a) the premises demised by the existing tenancy;
(b) other premises (whether real or hypothetical).
(4) The reference in this paragraph to the amount of a notional rent for premises includes an amount calculated in accordance with the rent determination terms on the basis of actual or assumed information or other assumptions (such as the use of rent determination terms which provide for a turnover rent so as to calculate an amount of notional rent on the basis of actual or assumed turnover).
(5) Element 2: the amount of the initial rent—
(a) will be different from the reference amount, or
(b) could be different from the reference amount (whether or not the amount could, alternatively, be the reference amount).
Amount of initial rent to be larger than reference amount
8 (1) This paragraph applies in relation to the new tenancy if the amount of the initial rent determined in accordance with the rent determination terms would be larger than the reference amount.
(2) That includes cases where the amount of the initial rent would be—
(a) smaller than the rent under the existing tenancy, but
(b) still larger than the reference amount.
(3) The rent determination terms are of no effect to the extent that they would result in the initial rent being larger than the reference amount.
(4) The amount of the initial rent is instead to be the same as the reference amount.
Exceptions
9 (1) The Secretary of State may, by regulations, provide for exceptions from paragraph 8 (whether an exception relates to the paragraph generally or to an aspect of the paragraph).
(2) Regulations under this paragraph—
(a) may include transitional or saving provision;
(b) may make different provision for different purposes;
(c) are to be made by statutory instrument;
(d) may not be made unless a draft of the statutory instrument containing the regulations has been laid before Parliament and approved by a resolution of each House of Parliament.
Anti-avoidance
10 An agreement (whether contained in the tenancy renewal arrangement or not) is void if, or to the extent that, it purports to require the tenant to make a payment in respect of any difference in an amount of initial rent which results from the operation of any other provision of this Schedule.
Interpretation
11 In this Schedule, in relation to a tenancy—
“existing tenancy” has the meaning given in paragraph 2(2);
“inflation” means a change in prices or costs (including a change in certain kinds of prices or costs) whether or not calculated by an official index; and here “prices or costs” includes rents;
“initial rent” has the meaning given in paragraph 5;
“new tenancy” has the meaning given in paragraph 3(2);
“reference amount” has the meaning given in paragraph 7(2);
“relevant premises” has the meaning given in paragraph 2(2);
“rent determination terms” has the meaning given in paragraph 6;
“tenancy renewal arrangement” has the meaning given in paragraph 3(2).
EIGHTH SCHEDULE Application of Part II to land belonging to Crown and Duchies of Lancaster and Cornwall
Section 56.
1 Where an interest in any property comprised in a tenancy belongs to Her Majesty in right of the Duchy of Lancaster, then for the purposes of Part II of this Act the Chancellor of the Duchy shall represent Her Majesty and shall be deemed to be the owner of the interest.
2 Where an interest in any property comprised in a tenancy belongs to the Duchy of Cornwall, then for the purposes of Part II of this Act such person as the Duke of Cornwall, or other the possessor for the time being of the Duchy of Cornwall, appoints shall represent the Duke of Cornwall or other the possessor aforesaid, and shall be deemed to be the owner of the interest and may do any act or thing under the said Part II which the owner of that interest is authorised or required to do thereunder.
3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 The amount of any compensation payable under section thirty-seven of this Act by the Chancellor of the Duchy of Lancaster shall be raised and paid as an expense incurred in improvement of land belonging to Her Majesty in right of the Duchy within section twenty-five of the Duchy of Lancaster Act 1817.
5 Any compensation payable under section thirty-seven of this Act by the person representing the Duke of Cornwall or other the possessor for the time being of the Duchy of Cornwall shall be paid, and advances therefor made, in the manner and subject to the provisions of section eight of the Duchy of Cornwall Management Act 1863 with respect to improvements of land mentioned in that section.
Sections 41, 42, 56, 68.
1, 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 Where immediately before the commencement of this Act a person was protected by section seven of the Leasehold Property (Temporary Provisions) Act 1951, against the making of an order or giving of a judgment for possession or ejectment, the Rent Acts shall apply in relation to the dwelling-house to which that person’s protection extended immediately before the commencement of this Act as if section fifteen of this Act had always had effect.
4 For the purposes of section twenty-six and subsection (2) of section forty of this Act a tenancy which is not such a tenancy as is mentioned in subsection (1) of the said section twenty-six but is a tenancy to which Part II of this Act applies and in respect of which the following conditions are satisfied, that is to say—
(a) that it took effect before the commencement of this Act at the coming to an end by effluxion of time or notice to quit of a tenancy which is such a tenancy as is mentioned in subsection (1) of the said section twenty-six or is by virtue of this paragraph deemed to be such a tenancy; and
(b) that if this Act had then been in force the tenancy at the coming to an end of which it took effect would have been one to which Part II of this Act applies; and
(c) that the tenant is either the tenant under the tenancy at the coming to an end of which it took effect or a successor to his business,
shall be deemed to be such a tenancy as is mentioned in subsection (1) of the said section twenty-six.
5 (1) A tenant under a tenancy which was current at the commencement of this Act shall not in any case be entitled to compensation under section thirty-seven or fifty-nine of this Act unless at the date on which he is to quit the holding the holding or part thereof has continuously been occupied for the purposes of the carrying on of the tenant’s business (whether by him or by any other person) for at least five years.
(2) Where a tenant under a tenancy which was current at the commencement of this Act would but for this sub-paragraph be entitled both to—
(a) compensation under section thirty-seven or section fifty-nine of this Act; and
(b) compensation payable, under the provisions creating the tenancy, on the termination of the tenancy,
he shall be entitled, at his option, to the one or the other, but not to both.
6 (1) Where the landlord’s interest in the property comprised in a tenancy which, immediately before the commencement of this Act, was terminable by less than six months’ notice to quit given by the landlord belongs to or is held for the purposes of a Government Department or is held by statutory undertakers, the tenancy shall have effect as if that shorter length of notice were specified in such an agreement as is mentioned in subsection (2) or (3) of section fifty-eight of this Act, as the case may be, and the agreement were embodied in the tenancy.
(2) The last foregoing sub-paragraph shall apply in relation to a tenancy where the landlord’s interest belongs or is held as aforesaid and which, immediately before the commencement of this Act, was terminable by the landlord without notice as if the tenancy had then been terminable by one month’s notice to quit given by the landlord.
7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8 Where at the commencement of this Act any proceedings are pending on an application made before the commencement of this Act to the tribunal under section five of the Landlord and Tenant Act 1927, no further step shall be taken in the proceedings except for the purposes of an order as to costs; and where the tribunal has made an interim order in the proceedings under subsection (13) of section five of that Act authorising the tenant to remain in possession of the property comprised in his tenancy for any period, the tenancy shall be deemed not to have come to an end before the expiration of that period, and section twenty-four of this Act shall have effect in relation to it accordingly.
9, 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11 Notwithstanding the repeal of Part II of the Leasehold Property (Temporary Provisions) Act 1951, where immediately before the commencement of this Act a tenancy was being continued by subsection (3) of section eleven of that Act it shall not come to an end at the commencement of this Act, and section twenty-four of this Act shall have effect in relation to it accordingly.