The House of Lords has overturned the well known and surprising Court of Appeal decision last year in Scottish & Newcastle plc v Raguz. The consequence is that it is no longer necessary for a landlord to serve protective section 17 notices within six months after every rent payment date to protect its right to pursue a former tenant or guarantor for any uplift in rent until the rent review has been determined or agreed. Any uplift in rent is now to be treated as falling due when the rent review has been agreed or determined and the period for serving section 17 notices for any uplift runs from that date.

This decision is a welcome relief for landlords who previously had to suffer the administrative burden and cost of serving section 17 notices even though the tenant was not in default and a rent review was still outstanding.