News & Insights

The Curry Mile in Manchester is a vibrant stretch of Wilmslow Road filled with restaurants, cafes, and shops featuring Middle Eastern and Indian cuisine. Despite the bustling atmosphere, recent legal proceedings at Manchester Crown Court illustrate the importance of landlords enforcing planning regulations on their tenants.

The Case

The Dubai Café had planning permission to operate as a restaurant but was found to be operating unlawfully as a shisha bar with the frontage altered to facilitate shisha smoking. Manchester City Council (MCC) issued an enforcement notice to cease operating a shisha smoking bar and remove all works that did not have planning permission.  The operators ignored this despite multiple confiscations of shisha equipment by MCC. The landlord, T&M Investments Limited, allowed the lease to continue until the council prosecuted them at which point they forfeited the lease of the operator of the cafe. In May 2023, T&M pleaded guilty to planning related offences and the judge fined the company £18,750, with an additional order to pay costs of £5,700 to MCC. An application was also brought under the Proceeds of Crime Act 2002, with T&M required to deliver up rent proceeds of £174,074 or risk imprisonment.

What does this mean for a commercial landlord?

This case highlights the importance of making sure as a landlord you have a well-written lease that explicitly forbids any breach of planning laws or any other illegal activities by the tenant. This would give the landlord the legal right to forfeit the lease and put an end to any unlawful conduct; however, it also places a responsibility on landlords and agents to be ever watchful. Even if a landlord is not actively involved in criminal activity, the POCA 2002 stipulates that any knowledge or suspicion of such activity associated with their property can result in severe consequences.

Other scenarios, such as premises being used for drug-related offenses or prostitution, or a breach of listed building consent, also leave landlords vulnerable to legal action.

In summary, this case highlights the need for commercial landlords to be vigilant and take action against any planning breaches by their tenants.

Forfeiting the lease may result in a vacant unit, but this is still more favourable than facing fines, a court-ordered surrender of rent and the damaging impact of being accused of benefiting from criminal activity.

Simply relying on a lease provision requiring compliance with legislation and planning requirements is not enough.

Laceys has two of the largest departments in Dorset that specialise in drafting business leases and also in taking action to enforce them to protect the interests of landlords.

For lease drafting or advice please contact our Commercial Property team.

For lease enforcement please contact our Dispute Resolution team.

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.