Timing of landlord's intention to redevelop

If Part II of the Landlord and Tenant Act 1954 applies to a tenancy, the tenant will have a statutory right to renew its tenancy at the end of the term. The landlord can only oppose renewal on certain limited grounds.

One of these allows the landlord to oppose renewal if, on the termination of the tenancy, the landlord intends to demolish or reconstruct the premises or to carry out substantial construction work on the premises that he could not reasonably do without obtaining possession.

In a recent case the High Court considered whether the landlord had to show the requisite intention to redevelop at a date determined by reference to a summary judgment hearing, or at a date determined by reference to the date of the trial of the ground of opposition.

The court held that the requisite intention had to be shown by reference to the date of the substantive trial of the landlord's ground of opposition. This decision will be welcomed by landlords, as it provides a clear authority on the timing of the landlord's requisite intention, which was not previously available.