Business evictions ban extended until March

Communities secretary, Robert Jenrick, said this final extension will give landlords and tenants three months to come to an agreement on unpaid rent. Where businesses can pay any or all of their rent, they should do so, he added.

Further guidance to support negotiations between landlords and tenants will be published soon.

In addition, Jenrick has also announced a review of 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 also how to improve the leasing process to ensure high streets and town centres thrive following the pandemic.

Jenrick said: “This support is for the businesses struggling the most during the pandemic, such as those in hospitality – however, those that are able to pay their rent should do so.

“We are witnessing a profound adjustment in commercial property. It is critical that landlords and tenants across the country use the coming months to reach agreements on rent wherever possible and enable viable businesses to continue to operate.

The government will also extend insolvency measures on restricting statutory demands and winding up petitions until the end of March.

The restriction on landlords using Commercial Rent Arrears Recovery (CRAR) to recover unpaid rent will also automatically extend to the end of March.

In response, ACS chief executive James Lowman, said: “We welcome action from the government to support local shops with more breathing space to pay bills and avoid aggressive debt recovery methods during the Covid-19 outbreak. This is especially relevant to local shops trading in city centres and transport hubs that have seen the biggest decline in trade and may be struggling.”

Helen Dickinson, chief executive of the British Retail Consortium, added: “This news comes in the nick of time for many retailers. With footfall down and many stores completely shut in November, many are counting on December sales to claw back some of the lost turnover from this year.

“This extension will give hard-pressed retailers breathing space to trade their way out of rent arrears that may have built up during lockdown. We hope that landlords and tenants will use this time to jointly agree new rent terms and payment plans to deal with any outstanding arrears.”