Press Release

Law Commission recommends the abolition of the law of forfeiture

31 October 2006

The Law Commission today publishes its Report on Termination of Tenancies for
Tenant Default. The Report recommends a new statutory scheme to replace the current law of forfeiture.

The law of forfeiture regulates a landlord’s right to terminate a tenancy before the tenant’s term has expired. It has been widely criticised as complicated, out-dated, and difficult to use. It affects landlords and tenants of both commercial and residential premises, together with others such as sub-tenants and mortgagees who have interests in the tenancy.

The Law Commission’s scheme, set out in a draft Bill, aims to provide outcomes that are proportionate and appropriate in the circumstances and to balance the interests of all the parties concerned. It would apply to termination for breach of covenant or condition in all cases save where the tenancy is subject to some other statutory regime.

Stuart Bridge, the Commissioner leading the project, said:

The case for reform of the law of forfeiture is overwhelming. The current law is excessively technical and unnecessarily complicated. It is difficult to those unfamiliar with the system to understand what is involved in a forfeiture and what they should do to protect their interests.

We recommend the implementation of a simpler, more coherent statutory scheme. It would make the law easier to understand and more straightforward to use, and it would assist landlords and tenants to resolve their differences out of court.