England Commercial Eviction & Forfeiture Process
A step-by-step guide to commercial evictions in England, covering forfeiture, Section 146 notices, peaceable re-entry, and relief from forfeiture.
Legal Disclaimer
This content is for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. Laws change frequently — always verify current regulations and consult a licensed attorney in your jurisdiction for advice specific to your situation. Landager is a property management platform, not a law firm.Information last verified: May 2026.
England Commercial Eviction & Forfeiture
Terminating a commercial lease in England follows a distinct legal process called forfeiture — a right that allows the landlord to end the lease and reclaim possession when the tenant breaches a lease covenant. Governed primarily by the Law of Property Act 1925 (which came into force on 1 January 1926), forfeiture is fundamentally different from the residential Section 8 eviction process.
[!WARNING] Waiver Risk: A landlord can accidentally lose the right to forfeit by "waiving" the breach — for example, by accepting rent after becoming aware of the breach. Landlords must act promptly and avoid any conduct that could be interpreted as treating the lease as continuing.
Requirements for Forfeiture
For a landlord to exercise the right of forfeiture, two conditions must be met:
- The commercial lease must contain a forfeiture clause (also called a "re-entry clause") — virtually all modern commercial leases include one.
- The tenant must be in breach of a lease covenant.
Forfeiture for Non-Payment of Rent
If the tenant has failed to pay rent:
- The landlord does not need to serve a Section 146 notice (unless the lease requires one).
- The landlord must make a formal demand for the rent, unless the lease waives this requirement (most modern leases do).
- The landlord can then proceed with peaceable re-entry (if the premises are vacant) or seek a court possession order.
Forfeiture for Other Breaches (Section 146 Notice)
For all breaches other than non-payment of rent (e.g., unauthorised alterations, subletting without consent, breach of user covenant), the landlord must first serve a Section 146 notice under the Law of Property Act 1925. This notice must:
- Specify the breach in detail.
- Require the tenant to remedy the breach (if it is capable of remedy) within a reasonable time.
- Require the tenant to pay compensation if the landlord claims financial loss.
If the tenant fails to remedy the breach within the specified time, the landlord can proceed with forfeiture.
Relief from Forfeiture
Commercial tenants have a significant safety net: the right to apply to the court for relief from forfeiture, which effectively reinstates the lease. Courts have broad discretion and will often grant relief if:
- The tenant remedies the breach and pays the landlord's costs.
- It would be unjust to permanently terminate the lease (e.g., a minor breach relative to a long, valuable lease).
For rent arrears, relief is commonly granted if the tenant pays all outstanding rent, interest, and the landlord's legal costs (governed by Section 138 of the County Courts Act 1984).
Sources & Official References
Frequently Asked Questions
▶What are the key landlord-tenant laws in England for 2026?
England's private rented sector has been fundamentally reshaped by the Renters' Rights Act 2025, which received Royal Assent on 27 October 2025. The Act abolishes Section 21 'no-fault' evictions from 1 May 2026, ends fixed-term assured shorthold tenancies (all ASTs automatically convert to assured periodic tenancies), standardises rent increases to Section 13 notices only, and introduces a right for tenants to request pets, a Private Landlord Ombudsman, and a mandatory PRS Database.
Read the complete guide▶What are the Section 21 eviction notice rules for landlords in England?
Section 21 'no-fault' evictions are abolished from 1 May 2026 under the Renters' Rights Act 2025. Landlords can serve Section 21 notices until 30 April 2026, and court proceedings based on those notices can continue until 31 July 2026. After that date, all new possession claims must use reformed Section 8 grounds, which require a legally specified reason such as rent arrears, landlord intends to sell, or landlord intends to move in.
Read the complete guide▶What is the security deposit limit for landlords in England?
Under the Tenant Fees Act 2019, security deposits are capped at 5 weeks' rent for properties with an annual rent under £50,000, or 6 weeks' rent for higher-value properties. All deposits must be protected within 30 days in a government-approved Tenancy Deposit Protection (TDP) scheme — either TDS, DPS, or MyDeposits. Failure to protect the deposit invalidates possession proceedings and can result in penalties of 1-3 times the deposit amount.
Read the complete guide▶How often can a landlord raise rent in England?
From 1 May 2026, the Section 13 notice becomes the only lawful method for landlords to increase rent — contractual rent review clauses will no longer be valid. Rent can only be increased once every 12 months, with a minimum of 2 months' written notice via Form 4 (or new Form 4A). Tenants retain the right to challenge increases at the First-tier Tribunal (Property Chamber), which can set the rent to the market rate.
Read the complete guide▶What disclosures must landlords provide to tenants in England?
England mandates extensive landlord disclosures including the government-issued 'How to Rent' guide, a valid Energy Performance Certificate (EPC) with a minimum E rating, a Gas Safety Certificate (renewed annually), an Electrical Installation Condition Report (EICR), and the Renters' Rights Act Information Sheet (required by 31 May 2026). From 1 May 2026, landlords must also disclose whether the property is covered by Good Cause Eviction provisions.
Read the complete guide▶What are landlord maintenance obligations in England?
Under the Landlord and Tenant Act 1985, landlords must maintain the structure and exterior, keep heating, water, gas, and electrical installations in proper working order, and ensure the property is fit for habitation under the Homes (Fitness for Human Habitation) Act 2018. The Renters' Rights Act 2025 adds enhanced enforcement powers including fines up to £7,000 for initial breaches and £40,000 for repeated or serious housing standard violations.
Read the complete guide▶What are the new tenant rights under the Renters' Rights Act 2025?
The Renters' Rights Act 2025 introduces major new tenant protections effective 1 May 2026: the right to request pets (landlords can only refuse with good reason), a cap of 1 month's rent in advance (preventing landlords from circumventing deposit limits), a free Private Landlord Ombudsman complaints service, a mandatory national PRS Database of landlords and properties, and enhanced penalty powers for local authorities.
Read the complete guide▶What are the late rent fee rules for landlords in England?
Under the Tenant Fees Act 2019, landlords in England can only charge interest on late rent (not a flat fee) at a rate no higher than 3% above the Bank of England base rate. This interest can only be charged after rent has been outstanding for 14 days. Any other charges or penalties for late payment are prohibited as they constitute banned tenant fees under the Act.
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