• news-banner

    Expert Insights

The latest on redevelopment under the Landlord and Tenant Act 1954

min read

Challenging times for the property industry mean that it is still having to keep all options under review when it comes to commercial – especially retail – property. These options will include potential redevelopment and some recent Court decisions offer a useful reminder of what a landlord will need to show in order to regain possession or insert a break right when it comes to a Landlord and Tenant Act 1954 protected tenancy.

Opposing renewal based on ground (f) (redevelopment)

In Man Limited v. Back Inn Time Diner Limited [2023] EWHC 363, the landlord unsuccessfully opposed the grant of a new lease on the grounds of redevelopment. Whilst the Court was satisfied that the landlord had demonstrated an intention to redevelop, the landlord could not objectively show that it had a realistic prospect of implementing that intention at the end of the lease due to a lack of planning permission and funding.
This case is a lesson in the importance of being organised; the landlord’s case was hindered by the fact that its appeal against the refusal of planning consent was still ongoing at the trial (although the appeal succeeded before judgment was handed down) and by its late disclosure of bank statements to evidence funding, which the judge refused to admit as evidence.

The landlords were similarly lacking in evidence and consequently unsuccessful in the case of GT Motoring Solutions Ltd & Anr v. Gareth Sinclair Williams & Anr (Unreported, County Court, 9 January 2023). In the Court’s view, the landlords had not demonstrated a firm and settled intention to demolish and redevelop. Their plans had changed significantly between December 2020 and December 2022 - from an intention to obtain planning permission to demolish and rebuild the premises to entering into a joint venture for the construction of a development.

In addition, the landlords failed to produce any expert evidence to support their case. The Court considered that expert evidence was necessary to show that there was a realistic prospect of planning permission being granted. The landlords also failed to evidence the cost of redevelopment, the availability of suitable finance and/or that arrangements would be in place to commence any redevelopment at the end of the tenancy.

Inserting a redevelopment break right

In B&M Retail Limited v. HSBC Bank Pension Trust (UK) Limited (Unreported, County Court, 3 March 2023), the landlord failed to serve a counter-notice opposing the grant of a new lease to the tenant’s Section 26 Request within 2 months. Instead, the landlord sought a redevelopment break clause during the subsequent lease renewal proceedings.

The landlord had entered into an agreement for lease with Aldi Stores for a conditional new lease under which Aldi would carry out defined redevelopment works. The Court reviewed the case authorities and concluded that a landlord should not be prevented from pursuing its redevelopment plans. It held that the landlord should be granted a rolling break clause operable immediately upon 6 months’ notice but the term of the lease should be 5 years (not 18 months as requested by the landlord).

Update (October 2023): the tenant’s subsequent appeal to the High Court was dismissed. The High Court confirmed that there is no rule that there has to be a certain period of delay between the grant of a new lease and the exercise of a redevelopment break clause within it.

Lessons learned

All cases turn on their own facts, but the outcomes in these cases show the importance of having key evidence available to the Court when it comes to a landlord of a 1954 Act protected tenancy proving its intention and ability to redevelop.

Please do not hesitate to contact any member of our Real Estate Disputes Team or your usual Charles Russell Speechlys contact if you would like to know more.

Our thinking

  • Judgement Under Pressure: The General Counsel and In-House Counsel Role in the Built Environment

    Events

    min read
  • Greenwashing webinar

    Kerry Stares

    Events

    min read
  • HR Breakfast Club: The Employment Rights Act 2025: In Discussion with Matthew Taylor CBE, Chair of the new Fair Work Agency

    Nick Hurley

    Events

    min read
  • The Playbook to Superscale: Hacks 4-6

    Events

    min read
  • The Bayeux Tapestry: threading the needle on art loans

    Suzanne Marriott

    Insights

    min read
  • Francis Ho writes in Building about the proposed ban on construction retentions

    Francis Ho

    In the Press

    min read
  • Kerry Stares is quoted in the ESG edition of Law UK

    Kerry Stares

    In the Press

    min read
  • Harriet Betteridge comments in Professional Adviser on the six-month countdown to UK pension inheritance tax changes

    Harriet Betteridge

    In the Press

    min read
  • The Global Legal Post quotes Lesley O'Leary on client relationship building in the age of AI

    Lesley O’Leary

    In the Press

    min read
  • Charles Russell Speechlys advises longstanding client Hearthstone Investments on its acquisition by Sentinel Real Estate

    Edward Robinson

    News

    min read
  • Kurt Rademacher comments in Eprivateclient regarding the possible impact of the US mid-term elections on UHNWIs

    In the Press

    min read
  • Charles Russell Speechlys wins Private Client Law Firm – Ultra-High Net Worth 2026 at eprivateclient Excellence Awards

    Piers Master

    News

    min read
  • Charles Russell Speechlys advises Meeyahta Development Limited on the proposed restructuring of Yoma Central Project

    Tun Zaw Mra

    News

    min read
  • The Recognition of UK Grants of Probate in France

    Harriet Betteridge

    Insights

    min read
  • IBA Annual Conference 2026

    Jean-Baptiste Beauvoir-Planson

    Events

  • The UK’s Expanded Bereavement Leave Rights

    Emily Chalkley

    Insights

    min read
  • The Silent Majority: Why Britain's Family Businesses Are the Overlooked Engine of AIM and the Main Market

    Greg Stonefield

    Insights

    min read
  • My child is engaged – how do I raise the issue of a prenuptial agreement?

    Julia Cox

    Insights

    min read
  • Charles Russell Speechlys shortlisted in two categories at Law.com British Legal Awards

    Lesley O’Leary

    News

    min read
  • What could the UK Government's proposed divorce law reforms mean for separating couples?

    Sarah Jane Boon

    Insights

    min read
Back to top