The meeting discussed the extent (if any) to which the relationship between Landlords and Business Tenants should be regulated by statute. The majority view was that the market place had changed over the years (and indeed many Business Tenants are now bigger than their Landlords) and that Business Tenants, on getting appropriate advice in advance, should be permitted to “contract out” of their statutory right to a new tenancy (which would arise following business occupation of a premises for at least five years). It was noted that this system already applied to the letting of office space only. The current rule was seen by many as arbitrarily imposing short term lettings on parties for fear that otherwise the Landlords ability to control and develop property could be lost indefinitely. Of course it is possible that if “contracting out” is allowed, many Landlords will refuse to lease commercial space to Tenants who do not agree to “contract out”.

 

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