Commercial lease renewal in Scotland – a different approach – Tenancy of Shops (Scotland) Act 1949

Edinburgh Woollen Mill Ltd v Singh and others [2013] (Unreported) (Sheriff N A Ross) (4 September 2013)

The Landlord and Tenant Act 1954 as regards renewal of business leases does not extend to Scotland. By and large Scotland has been able to manage its commercial property lettings without such statutory control. A modest exception relates to retail premises, or more specifically to shops within the meaning of the Shops Acts 1912–1936. The Act in question is the Tenancy of Shops (Scotland) Act 1949 which, evidently is little used. In his decision in this case the Sheriff adopted the Pepper (Inspector of Taxes) v Hart [1993] AC 593 authority to get a better understanding of the legislative intention. According to speeches in the House, the shopkeepers of Scotland suffered enormous hardships and required protection from unscrupulous private property speculators when leases came to an end. In Glasgow ‘most small shopkeepers would have had the pistol put to their heads either to buy at exorbitant prices or to quit the premises.’ Complaint was made that men were forming companies for the purpose of buying up shops and other property all over the country. The purpose of the bill was to stop the ‘buy or quit’ racket. Evidently it was not necessary to worry about the multiple traders because ‘they have the ability and funds to pay prices of a higher character.’