Business evictions ban extended until March

09 Dec 2020

Business owners affected by the pandemic will be protected from eviction until the end of March 2021, Communities Secretary Robert Jenrick announced today (9 December 2020).

This final extension to protections from the threat of eviction will give landlords and tenants 3 months to come to an agreement on unpaid rent. The government is clear that where businesses can pay any or all of their rent, they should do so.

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

Alongside this, Mr Jenrick has also announced a review of the outdated commercial landlord and tenant legislation, to address concerns that the current framework does not reflect the current economic conditions.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 also how to improve the leasing process to ensure our high streets and town centres thrive as we recover from the pandemic and beyond.

Today’s announcement builds on the extra government support for businesses, including targeted VAT cuts, extension of government-backed loan schemes, grants of up to £3,000 for premises that must close, and £1.1 billion for councils to enable them to support businesses in their area.

Secretary of State for Housing Rt Hon Robert Jenrick MP said,

I am extending protections from the threat of eviction for businesses unable to pay their rent until March 2021, taking the length of these measures to one year. This will help them recover from the impact of the pandemic and plan for the future.

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.

Business Secretary Alok Sharma said,

We have stood by businesses across the country throughout this pandemic, and as we head into the New Year we will make sure they continue to have the support they need to keep their finances stable, protect jobs and build back better.

There is still some uncertainty ahead, but knowing that they won’t be evicted by their landlord will give thousands of business owners some breathing space and the additional confidence they need to plan for their futures.

Further guidance to support tenants and landlords to continue to work together to agree rent payment options where businesses are struggling will be published shortly.

Additional guidance published early next year 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.

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 line with the moratorium’s expiry date. This allows businesses sufficient breathing space to pay rent owed.

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Source: gov.uk