Final eviction extension
This final extension to protection from the threat of eviction will give commercial landlords and tenants three months to come to an agreement on unpaid rent.
The Government is also extending insolvency measures on restricting statutory demands and winding up petitions, which were due to expire on 31 December 2020. Additionally, the restriction on landlords using Commercial Rent Arrears Recovery (CRAR) to recover unpaid rent will also automatically extend to 31 March, in line with the moratorium’s expiry date, allowing sufficient breathing space to pay rent owed.
These measures will support businesses worst affected by the pandemic, helping them to rebuild over the winter period. However, it is stressed that where businesses can pay any or all their rent, they should do so as the support is aimed at those facing financial hardship during the pandemic.
Evictions legislation review
Jenrick also announced there will be a review of the outdated commercial landlord and tenant legislation, to address concerns that the current framework does not reflect the current economic conditions.
This review will consider how to enable better collaboration between commercial landlords and tenants and how to improve the leasing process to ensure high streets and town centres thrive the country recovers from the pandemic and beyond.
Guidance
Further guidance to support tenants and landlords to continue to work together to agree on rent payment options where businesses are struggling will be published shortly. Additional guidance, to be published early in 2021, will sit alongside the Government’s Code of Practice, published in June, to encourage all parties to work together to protect viable businesses and ensure a swift economic recovery.
