Improvements – Landlord and Tenant Act 1927

Norfolk Capital Group Ltd v Cadogan Estates Ltd [2004] EWHC 384 (Ch); [2004] 3 All ER 889; [2004] 32 EG 64

From time to time a tenant might want to carry out improvements to the demised premises. Generally the lease covenants will prevent him from doing so. Part 1 of the Landlord and Tenant Act 1927 sets out a statutory scheme, but in practice it seems to be little used. It is nevertheless a useful remedy available to a tenant facing an absolute prohibition. One perceived problem is that the landlord is entitled to take on the improvement works and obtain an increased rent. If the parties cannot agree the terms, they will be determined by the court. Some tenants will be very wary as it is not clear what methodology the court might use to calculate compensation. There is little case law on the statutory scheme. Despite being enacted some 75 years ago, a novel point has cropped up. A recent case , Norfolk Capital Group Ltd v Cadogan Estates Ltd [2004] EWHC 384 (Ch); [2004] 3 All ER 889; [2004] 32 EG 64, gives a useful insight into some parts of the scheme.