Licences, tenancies at will and periodic tenancies

Licences

Leases (whether residential or commercial) give tenants a range of statutory protections. They include:

•
various forms of 'security of tenure', including under Part II of the Landlord and Tenant Act 1954 (LTA 1954) in respect of business tenancies, and under the Housing Act 1988 (HA 1988) in respect of assured tenancies (AT) and assured shorthold (AST) residential tenancies
•
compensation for improvements under the Landlord and Tenant Act 1927
•
in respect of residential leases, protection from eviction and the regulation of costs such as service charges

Licensees will generally not enjoy many of those protections: both LTA 1954 and HA 1988 (in respect of ATs and ASTs) apply to tenancies, not licences. A licence might therefore seem to offer the owner of commercial property a way to allow occupation on an 'easy in, easy out' basis, without the need to follow complex statutory procedures. Licences are also sometimes used in order to allow a future tenant early access to a property before a tenancy is finalised.

However, caution should always be exercised

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Property Disputes News

RICS announces updated Red Book Global Valuation Standards

The Royal Institution of Chartered Surveyors (RICS) has announced significant updates to its Valuation - Global Standards, known as the Red Book. The new edition, set to take effect on 31 January 2025, includes key upgrades such as: alignment with the latest International Valuation Standards; significant adaptations for fast developing areas such as technology and Environmental Social and Governance considerations; integration of new data on modelling and methods and a reformed format for Valuation Technical and Performance Standards.

MHCLG publishes Remediation Acceleration Plan to address unsafe cladding

The Ministry of Housing, Communities and Local Government (MHCLG) has published a new Remediation Acceleration Plan (RAP), aimed at expediting the removal of unsafe cladding in England, identifying all unsafe buildings, and supporting residents from the financial burdens of remediation. The plan sets key targets for 2029, including remediating all 18m+ buildings with unsafe cladding in government-funded schemes by 2029, and ensuring all 11m+ buildings are either remediated, have a completion date, or landlords face severe penalties. The RAP is supported by increased enforcement investment, which will increase the capacity of local authorities, fire and rescue authorities and the Building Safety Regulator (BSR) to manage hundreds of cases annually. The publication of the RAP coincides with a Parliamentary debate on the findings of the Grenfell Tower Inquiry’s final report. During the debate, it was announced that a continuous review process for statutory guidance to building regulations will be introduced, covering fire safety and building design by the BSR. In addition, there will be a review of how the Building Regulations guidance is produced, updated, and communicated to the construction industry.

MHCLG consults on permitted insurance fees for landlords and freeholders

The Ministry of Housing, Communities and Local Government (MHCLG) has launched a consultation, seeking views on introducing permitted insurance fees for landlords, freeholders, and property managing agents, pursuant to measures in the Leasehold and Freehold Reform Act 2024, which addresses concerns over opaque and excessive charges imposed on leaseholders for building insurance. The proposals suggest replacing the current commission-based remuneration system with a transparent fee structure that reflects the work involved in arranging and managing building insurance. The consultation seeks views on the activities to be covered by the permitted fee, how it should be calculated, and additional criteria to ensure fairness and proportionality. The responses received will inform secondary legislation that will define the parameters of the permitted fee. The consultation closes on 24 February 2025.

Property Disputes weekly highlights—28 November 2024

This week's edition of Property Disputes weekly highlights includes: a Court of Appeal decision on adverse possession and first registration, High Court decisions on the balance that must be struck between the rights to freedom of speech and assembly versus the prevention of trespass on private property, and beneficial ownership of a long leasehold restaurant property, and an Upper Tribunal decision on whether the First-tier Tribunal correctly decided to imply a legal obligations compliance term into a headlease. It also includes the approval of the 175th and 176th Practice Direction Updates to the Civil Procedure Rules, the publication of the minutes of the meeting of the King’s Bench Masters’ Court Users’ Group, the Civil Justice Council’s second phase report on the Pre-Action Protocols, the launch of the UK Supreme Court’s new digital platform and the Ministry of Housing, Communities and Local Government’s announcement of leasehold reforms for 2025, and publication of its impact assessment on the Renters’ Rights Bill.

View Property Disputes by content type :

News