Commercial Property Disputes UK: How to Resolve Them

Overview

A commercial property dispute is any disagreement connected to the ownership, occupation, use or transfer of commercial premises in England and Wales. That covers a wide field: lease disputes between landlords and business tenants, arguments about service charges, dilapidations at the end of a tenancy, breaches of covenant, rent arrears, forfeiture, boundary questions, rights of way and easements, development disagreements, and problems arising from sales or purchases such as misrepresentation or failure to complete.

Some of these sit within specific statutory frameworks, such as the Landlord and Tenant Act 1954 for business lease renewals, or the Leasehold Property (Repairs) Act 1938 for certain repairing covenant claims. Others are governed almost entirely by the terms of the contract the parties signed.

Because commercial parties are generally treated as able to negotiate their own bargain, the courts tend to hold them to the wording of their agreements. That makes the starting point for any dispute the same: read the lease, the contract, and the correspondence carefully before deciding how to respond.

Key steps

1. Read the paperwork before reacting. Before firing off a letter or picking up the phone in anger, pull together the lease, any side letters, the contract of sale, recent correspondence and any notices served. The strength of your position almost always turns on the written terms, so knowing exactly what they say, and what deadlines or notice periods apply, should come first.
2. Open a commercial conversation early. Most commercial property disputes resolve faster and cheaper when the parties talk before positions harden. A direct, businesslike exchange, whether between principals or their advisers, often uncovers a middle ground that formal correspondence would miss. Keep notes, confirm anything agreed in writing, and mark without prejudice correspondence clearly when exploring settlement.
3. Consider mediation or expert determination. If direct negotiation stalls, a structured process such as mediation can unlock a deal. Mediation is confidential, non-binding until an agreement is signed, and often completes in a single day. For technical issues like rent reviews or service charge calculations, expert determination by a surveyor may be faster and more cost-effective than litigation.
4. Check whether arbitration or a tribunal applies. Some leases require disputes to go to arbitration, and certain matters, such as residential-style service charge issues in mixed-use buildings, may fall within the First-tier Tribunal (Property Chamber). Check the lease's dispute resolution clause carefully. Starting court proceedings when arbitration is mandatory can be a costly mistake.
5. Litigate only when it genuinely serves the commercial goal. Court proceedings in the County Court or the Business and Property Courts are sometimes unavoidable, particularly where urgent relief such as an injunction or possession order is needed. Before issuing, weigh the likely costs, timescales, disclosure burden and reputational impact against what a judgment would actually achieve for the business.

Common questions