A recent decision of the Central London County Court (Ministry of Sound Ltd v The British and Foreign Wharf Company Ltd & others [2025]) has reaffirmed that landlords can secure redevelopment break clauses in lease renewals under the Landlord and Tenant Act 1954, provided they demonstrate a genuine likelihood of redevelopment during the new term. The judgment offers clarity on how courts balance the competing interests of tenant security and landlord flexibility. 

Background 

The Ministry of Sound is the tenant under a lease of the premises, a superclub in Elephant and Castle, London. Whilst the lease renewal was uncontested, the landlord sought a redevelopment break clause as the premises sit within a major regeneration zone. The tenant resisted, arguing that a break clause would undermine its investment and long-term business planning.

Court’s findings

The court accepted that the landlord’s evidence demonstrated that there was a real possibility of redevelopment within the term of the renewal lease. Generalised assertions made by the tenant that a break would destabilise operations lacked sufficient evidence. The judgment emphasised that landlords do not need to show certainty of redevelopment - only a genuine and realistic prospect of redevelopment. 

The inclusion of the redevelopment break clause warranted a 26% discount on the rent due. This adjustment illustrates the court’s attempts to balance the landlord’s interests with those of the tenant. 

Practical guidance

This case provides important guidance for landlords and tenants navigating a lease renewal where a redevelopment break is proposed: 

• For landlords: build a comprehensive evidence base for redevelopment prospects, including documented steps taken to show that redevelopment is a genuine possibility.
• For tenants: any objections must be supported by detailed financial and operational analysis rather than broad assertions and must explain why a rent concession would not adequately address the concerns raised.

This judgment underscores the courts’ commitment to balancing landlords’ development flexibility with tenants’ security. 

For tailored advice on this matter, or any other property dispute, please contact Phil Scully or Rhys Baker in our Commercial Property Litigation team.