Termination of Tenancies for Tenant Default - Law Commission

of the law”. A number of leading law firms 17 likewise responded in terms which
indicated acceptance of the desirability of reform, Herbert Smith believing:
… that the proposals to remove the common law right to forfeit a
lease and to remove the common law rights of re-entry are to be
welcomed. A clear benefit is to be found in the introduction of a
statutory regime and more importantly for landlord clients in the
abolition of the concept of waiver. A landlord should be entitled to
demand and receive rent even though a breach has been discovered,
or indeed a breach has been remedied, without losing the right to call
for the statutory termination of a tenancy.
1.20 Both the Society of Legal Scholars and the academics who submitted individual
responses felt the case for reform was clear.
1.21 The Office of the Deputy Prime Minister (now the Department for Communities
and Local Government) put our proposals before its Property Consultative Group.
The CP’s proposals were welcomed as a considerable improvement on the
present very complex law, addressing human rights concerns but at the same
time enabling landlords to deal with tenants in persistent default.
1.22 Responses were also received from representative bodies of landlords, tenants
(for the most part long leaseholders) and lending institutions. One of the largest
commercial landlords in the UK, PruPIM, supported the implementation of a
statutory scheme to replace the current law, as did the Church Commissioners.
The British Property Federation, representing commercial landlords, stated:
This is a complex area of law, and as the consultation paper states, is
full of anomalies. It would be helpful therefore for tenants and
landlords, if the processes involved were simplified.
We are therefore broadly supportive of the Law Commission’s
recommendations for reform. The proposed new system is much
more logical and means that a tenancy will continue until terminated
by a court order.
1.23 As will become clear, certain reservations were expressed from those
representing long residential leaseholders about the implications of our
provisional proposals concerning Chapter 5 of the Commonhold and Leasehold
Reform Act 2002. 18 Nevertheless, the case for reform of the current law was
accepted as “overwhelming”.
1.24 The Royal Institution of Chartered Surveyors accepted that a modernised law of
forfeiture had a place in modern commercial lease practice. The Council of
Mortgage Lenders broadly welcomed the proposals, considering that they struck
“a sensible balance between the requirements of the landlord, the tenant and
other interests in what is a difficult and complex area”.
17 Clifford Chance LLP, Lovells, Slaughter and May and Herbert Smith.
18
Brighton & Hove Private Sector Housing Forum and Friends of Brunswick Square and
Terrace.
16