Section 34 Rent under new tenancy.F1
England and Wales
The rent payable under a tenancy granted by order of the court under this Part of this Act shall be such as may be agreed between the landlord and the tenant or as, in default of such agreement, may be determined by the court to be that at which, having regard to the terms of the tenancy (other than those relating to rent), the holding might reasonably be expected to be let in the open market by a willing lessor, there being disregarded—
any effect on rent of the fact that the tenant has or his predecessors in title have been in occupation of the holding,
any goodwill attached to the holding by reason of the carrying on thereat of the business of the tenant (whether by him or by a predecessor of his in that business),
any effect on rent of an improvement to which this paragraph applies,
in the case of a holding comprising licensed premises, any addition to its value attributable to the licence, if it appears to the court that having regard to the terms of the current tenancy and any other relevant circumstances the benefit of the licence belongs to the tenant.
Paragraph (c) of the foregoing subsection applies to any improvement carried out by a person who at the time it was carried out was the tenant, but only if it was carried out otherwise than in pursuance of an obligation to his immediate landlord and either it was carried out during the current tenancy or the following conditions are satisfied, that is to say,—
that it was completed not more than twenty-one years before the application F2to the court was made; and
that the holding or any part of it affected by the improvement has at all times since the completion of the improvement been comprised in tenancies of the description specified in section 23(1) of this Act; and
that at the termination of each of those tenancies the tenant did not quit.
If this Part of this Act applies by virtue of section 23(1A) of this Act, the reference in subsection (1)(d) above to the tenant shall be construed as including—
a company in which the tenant has a controlling interest, or
where the tenant is a company, a person with a controlling interest in the company.
Where the rent is determined by the court the court may, if it thinks fit, further determine that the terms of the tenancy shall include such provision for varying the rent as may be specified in the determination.
It is hereby declared that the matters which are to be taken into account by the court in determining the rent include any effect on rent of the operation of the provisions of the Landlord and Tenant (Covenants) Act 1995.
The court’s powers under this section to determine the rent payable under a tenancy granted by order of the court under this Part of this Act do not apply where—
the current tenancy is a subsisting agreement within the meaning of Schedule 2 to the Digital Economy Act 2017, and
the primary purpose of the current tenancy is to confer code rights (within the meaning of paragraph 3 of that Schedule).
(See instead section 34A.).
Annotations
Textual amendments
- F1
S. 34 substituted by virtue of Law of Property Act 1969 (c. 59), s. 15, Sch. 1
- F2
Words in s. 34(2)(a) substituted (1.6.2004) by Regulatory Reform (Business Tenancies) (England and Wales) Order 2003 (S.I. 2003/3096), arts. 1(3), 9
- F3
S. 34(2A) inserted (1.6.2004) by Regulatory Reform (Business Tenancies) (England and Wales) Order 2003 (S.I. 2003/3096), arts. 1(3), 15
- F4
S. 34(4) inserted (1.1.1996) by 1995 c. 30, s. 30(1), Sch. 1 para. 3 (with ss. 2(2), 26(1)(2)); S.I. 1995/2963, art. 2
- F5
S. 34(5) inserted (7.4.2026) by Product Security and Telecommunications Infrastructure Act 2022 (c. 46), ss. 61(5), 79(2); S.I. 2025/1326, reg. 2(a) (with regs. 3-5)
Notes on Part II
Modifications
- C1
Pt. 2 restricted by 1983 No. 1, s. 56(2G)(b) (as inserted (1.1.2007) by Pastoral (Amendment) Measure 2006 (No. 2), ss. 1(b), 2(2); 2006 No. 3, Instrument made by Archbishops)
- C2
Pt. 2 excluded (20.3.2015) by Criminal Justice and Courts Act 2015 (c. 2), s. 95(1), Sch. 10 para. 3(1)(a); S.I. 2015/778, art. 2(1)(d)
- C3
Pt. 2 excluded (15.3.2018) by City of London Corporation (Open Spaces) Act 2018 (c. i), s. 6(7) (with ss. 3, 4(2))
- C4
Pt. 2 excluded (coming into force in accordance with s. 13 of the amending Act) by Monken Hadley Common Act 2022 (c. ii), s. 9(5) (with s. 8(3))
- C5
Pt. 2 excluded (24.11.2025) by General Cemetery Act 2025 (c. ii), ss. 1(2), 11(2) (with s. 11(3))
- C6
Pt. 2 modified (30.7.2026) by The Product Security and Telecommunications Infrastructure Act 2022 (Conferral of Tribunal Jurisdiction under the Landlord and Tenant Act 1954 etc.) Regulations 2026 (S.I. 2026/569), regs. 1(2), 3 (with reg. 4)
- C7
Pt. 2 amended by Opencast Coal Act 1958 (c. 69), s. 37, Sch. 7 paras. 10, 20; excluded by Leasehold Reform Act 1967 (c. 88), s. 16(1)(c)(d) and Rent Act 1977 (c. 42), s. 24(2), Sch. 1 paras. 8, 9
- C8
Pt. 2 (ss. 23–46) excluded (prosp.) by Transport Act 1982 (c. 49, SIF 107:1), ss. 14(1), 76(2)
- C9
Pt. 2 (ss. 23–46) excluded by Dockyard Services Act 1986 (c. 52, SIF 58), s. 3(2)
- C10
Pt. 2 (ss. 23–46) excluded by Housing Act 1988 (c. 50, SIF 61), s. 101(2)
- C11
Pt. 2 (ss. 23–46) restricted by City of London (Spitalfields Market) Act 1990 (c. ix), s. 5(4)
- C12
Pt. 2 (ss. 23-46) excluded by Atomic Weapons Establishment Act 1991 (c. 46, SIF 8), ss. 3(1), 6(2), Sch. para. 3
Pt. 2 (ss. 23-46) excluded (1.11.1993) by 1993 c. 28, s. 59(2)(b)(ii); S.I. 1993/2134, art. 5
Pt. 2 (ss. 23-46) excluded: (1.4.1994) by 1993 c. 43, s. 31(1) and S.I. 1994/571, art. 5; (3.11.1994) by 1994 c. 33, s. 7(3)(a); (3.11.1994) by 1991 c. 53, s. 84 (as substituted (3.11.1994) by 1994 c. 33, s. 96); (1.10.1996) by 1996 c. 46, s. 30(7)(11) and S.I. 1996/2474, art. 2
Pt. 2 (ss. 23-46) excluded (1.8.2000) by 1999 c. 33, s. 149(3)(a); S.I. 2000/1985, art. 2, Sch.