SQE Practice Exam 2025 – Complete Preparation Guide

The first step to contracting out security of tenure involves giving notice to the occupier. This process is critical because, under the Landlord and Tenant Act 1954, tenants typically have rights to renew their leases, providing them with significant security of tenure. To waive or "contract out" of these rights, landlords must inform the tenant through a clear notice that indicates that they are not providing the security of tenure offered under the Act.

This notice must meet specific legal requirements, including being in writing and explaining the implications of contracting out, to ensure that the tenant understands their position. Proper giving of this notice forms the necessary groundwork for any subsequent actions that might be taken, whether that involves negotiating terms or engaging in further legal processes.

Other options, while they may seem relevant, follow after this initial notification. Granting a lease happens after the tenant has been informed about the lack of security. Court approval may be necessary in certain circumstances but is not the first step. Making an offer to a new tenant is typically a later stage that occurs after security of tenure concerns have been addressed. Thus, giving notice to the occupier is indeed the essential first step in contracting out security of tenure.