Property Law uk

Maintained by Gary Webber

Does the Act apply?

This page contains information relating to various topics to consider when deciding whether or not Part II of the 1954 Act applies to the tenancy:
  • Occupation - amount required.
  • Periods at the beginning or end of the term when there is a limited amount of occupation.
  • Can occupation of a car parking space be sufficient?
  • Leaving prior to end of the term so that the Act no longer applies - Esselte revisited.
  • Residential properties sublet by business tenant.
  • Tenancy by estoppel
  • Section 43 - 12 months occupation

Lease or licence

The principles of Street v Mountford applies to business premises. The essential consideration is whether or not the occupier has been granted exclusive possession. See further the "Lease or licence" page in the Landlord and tenant (general) section of the site.


Section 23(1) of the Landlord and Tenant Act 1954 provides as follows:
    "Subject to the provisions of this Act, this Part of this Act applies to any tenancy where the property comprised in the tenancy is or includes premises which are occupied by the tenant and are so occupied for the purposes of a business carried on by him or for those and other purposes."
Amount of occupation required

Flairline Properties v Hassan
[1999] 1 EGLR 138 Anthony Hacking QC, Deputy High Court Judge.

Tenant who was absent from his restaurant premises as a result of a fire but who continued to claim his right to occupy continued to a business tenant even though he had opened other premises round the corner.

Occupation for short period at end of term - car parking spaces

Pointon York Group plc v Poulton
[2006] EWCA Civ 1001


There were two issues in this case:
  • Were the parking spaces that the tenants had the right to occupy under the lease "premises" that could be "occupied" for the purposes of their business? Held: yes.
  • Was occupation for three days at the end of a lease, after a sub-lease of the whole had come to an end, sufficient occupation for the purposes of s23? Held: yes.
Parking spaces


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