Compensation for failure to obtain a new tenancy

In certain circumstances, the tenant may be entitled to compensation for failing to obtain a new tenancy where they are forced to leave the premises through no fault of their own, i.e. where the landlord serves a s 25 notice or counter-notice to a s 26 request stating one or more of the grounds of opposition, namely grounds (e), (f ) or (g).

The amount of compensation is the rateable value of the holding multiplied by the ‘appropriate multiplier’ which is a figure prescribed from time to time by the Secretary of State, and at the time of writing is 1. In some cases, the tenant will be entitled to double compensation. This happens when the tenant or his predecessors in the same business have been in occupation for at least 14 years prior to the termination of the current tenancy.  

Dion McCarthy, Trainee Solicitor

dmccarthy@astonbond.co.uk