The UK Government recently announced that all businesses will be protected from eviction from their commercial premises until 25 March 2022. Landlords will also be prohibited from recovering rent arrears through the seizure of goods until the end of the first quarter next year.
In another move to protect business owners, the Government has committed to shielding organisations against statutory demands and winding up petitions if they have been affected by the Covid 19 pandemic until 30 September 2021. The easing of conditions in which a company can enter into a Part A1 moratorium also continues until 30 September 2021.
Consultation on how to handle the build-up of rent arrears
Although the moratorium on eviction and recovering rent arrears through seizure has been extended, the colossal amount of unpaid rent owed to landlords will not disappear. To ensure that an avalanche of Court action does not occur the moment the current protections are lifted, the Government is considering responses to a consultation on how landlords and tenants are managing or planning to manage rent arrears resulting from the Coronavirus pandemic. Responses have been requested from businesses (especially SMEs); business representative organisations; commercial landlords, lenders, and investors and their representative organisations; commercial property professionals; and anyone with an interest in or connection to the commercial property market in England.
“If there is evidence that productive discussions between landlords and tenants are not taking place, and that this represents a substantial and ongoing threat to jobs and livelihoods, the government will not hesitate to intervene further.”