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Sarah Whitehurst
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Further reliefs for commercial tenants

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Within the last 24 hours the Government has announced further measures to assist commercial tenants during the coronavirus pandemic. 

The Government has already placed a moratorium on a landlord’s ability to forfeit a commercial lease for non-payment of rent until the end of June 2020.  However, it appears that the Government is concerned that, whilst the majority of landlords and tenants are working together to reach agreements on rent and other payments, some landlords have put tenants under “undue pressure by using aggressive debt recovery tactics”.

It is with this in mind that the Government is seeking to introduce further legislation to place a temporary ban on the use of statutory demands and winding up orders in circumstances where a company cannot meet payment obligations due to the coronavirus pandemic.  The Government is also seeking to introduce secondary legislation which prevents landlords using Commercial Rent Arrears Recovery (CRAR) unless they are owed 90 days unpaid rent. 

A further update will be issued once the legislation is put  in place.