# Business tenancies: Landlord and Tenant Act 1954 Part II

> **Key takeaway:** 1954 Act Part II: business occupation → security unless validly contracted out. s.25/s.26 notices. Landlord grounds s.30. Strict timings. New tenancy terms O'May approach. Get the dates right.

- **Jurisdiction:** England & Wales
- **Practice area:** Property
- **Last reviewed:** 2026-08-04
- **Interactive page:** https://kttclegal.info/library/notes/Property/business-tenancies-1954-act
- **Keywords:** Landlord and Tenant Act 1954, business tenancy, security of tenure, section 25 notice, section 30 grounds, contracting out, lease renewal, O'May

## What is this about?

Part II of the Landlord and Tenant Act 1954 gives business tenants security of tenure and a statutory right to a new tenancy, subject to ground-based landlord opposition and contracting-out formalities. It is core commercial property work in England and Wales.

## What is the core rule?

A tenancy where the property is occupied for business purposes generally attracts 1954 Act protection (s.23) unless validly contracted out using the prescribed warning notice and declaration procedure (s.38A / Regulatory Reform Order formalities). Continuation and termination are structured around s.24–s.28. Landlords may oppose renewal on statutory grounds in s.30(1) (e.g. tenant breach, alternative accommodation, redevelopment, own occupation). Terms of the new tenancy are settled under s.32–s.35 if not agreed. Time limits on notices and applications are strict.

## What are the elements or test?

1. Is there a tenancy occupied for business purposes (s.23)?
2. Valid contracting-out?
3. Who served notice (s.25 landlord / s.26 tenant) and was it in time/form?
4. Landlord opposition: which s.30 ground and evidence?
5. Court application deadlines met?
6. Interim rent and terms of new tenancy issues?

## Which authorities matter?

- **Landlord and Tenant Act 1954, Part II (especially ss.23–30, 32–35, 38A)** — Primary statutory code for business security of tenure and renewal.
- **Regulatory Reform (Business Tenancies) (England and Wales) Order 2003** — Modernised contracting-out procedure (warning notice and simple/statutory declaration).
- **O'May v City of London Real Property Co Ltd [1983] 2 AC 726** — House of Lords guidance on terms of the new tenancy — starting from the old tenancy with limited changes.

## How does this apply in practice?

Procedure is unforgiving on dates. Professional negligence risk is high on missed renewals. Scotland has a different regime. Pair with leases-and-licences note for lease/licence classification upstream.

## What are common pitfalls?

- Defective contracting-out paperwork
- Missing the court application window after counter-notices
- Misidentifying occupation/business use for s.23
- Weak evidence on redevelopment or own-occupation grounds

## When would a practitioner use this?

Lease renewals, break/redevelopment strategies, and drafting contracted-out leases.

## Quick reference

1954 Act Part II: business occupation → security unless validly contracted out. s.25/s.26 notices. Landlord grounds s.30. Strict timings. New tenancy terms O'May approach. Get the dates right.

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*Reference material from [KTTC Legal](https://kttclegal.info/), not legal advice. Work product supports instructing solicitors and barristers under their supervision. England & Wales.*