The Law Commission published its second consultation paper on 16 June 2026 as part of its project Business Tenancies: the Right to Renew. The consultation closes on 16 September 2026. Everything on this page is a proposal. Renewals happening now are governed by the Act as it stands.
Consultation Paper 2 open until 16 September 2026.
Final recommendation
Law Commission report and draft Bill — not yet published.
Government response
Awaited.
Bill introduced
Awaited.
Parliamentary stages
Awaited.
Royal Assent
Awaited.
Commencement
Awaited — watch for transitional provisions.
The proposals
Each card sets out the current law first, then the proposal, and never treats the two as the same thing.
Current law
Part II applies where premises are occupied by the tenant for the purposes of a business carried on by the tenant, subject to the statutory exclusions.
Law Commission proposal
The Commission is consulting on clarifying and modernising which tenancies qualify, including how mixed and shared occupation is treated.
Why change is proposed
The occupation test has generated repeated litigation, and modern flexible and shared workspace arrangements sit awkwardly within it.
Potential landlord effect
Greater certainty at the outset about which lettings carry renewal rights.
Potential tenant effect
Clearer protection for occupiers whose arrangements are currently borderline.
This guide is general information, not legal advice. Deadlines under the 1954 Act are strict and a mis-served notice can cost you the renewal. If your matter is live, speak to a professional.
