Lease Structure and Content

The correct answer is B. The two sectors run on entirely separate statutory tracks. The flat is held on an assured tenancy under the Housing Act 1988, and since the Renters' Rights Act 2025 came into force on 1 May 2026 the assured shorthold tenancy and the section 21 "no-fault" notice have gone: every assured tenancy is periodic, and possession can be recovered only by establishing one of the statutory grounds in Schedule 2, on a section 8 notice, with an order of the court. Wanting the property back in order to redevelop is not a matter of serving notice that the term has ended; she must find a ground that fits her facts and prove it. The shop is held on a tenancy to which Part II of the Landlord and Tenant Act 1954 applies, the parties not having contracted out before the lease was granted. That tenancy does not simply expire with the term: it continues until brought to an end in the manner the Act prescribes, and the tenant is entitled to a new tenancy unless the landlord makes out a statutory ground of opposition - redevelopment being the obvious candidate here, with compensation payable to the tenant if that is the only ground made out.

A is incorrect because the 1954 Act governs business tenancies; it does not apply to a dwelling let and occupied as such. C is incorrect because security of tenure turns on which statutory regime applies, not on the length of the term. D is incorrect because both tenants are protected, though by different legislation and different machinery. E is incorrect because it inverts the residential position: since the 2025 Act the assured tenant is more secure than before, not less.