Landlords and rent
The government has announced a number of actions to protect commercial tenants from aggressive rent collection and closure measures by landlords. High street shops and other companies under strain will be asked to pay what they can during the pandemic.
Although the Government recognises that the majority of landlords and tenants are working well together to reach agreements on debt obligations, it notes that some landlords have been putting tenants under undue pressure by using aggressive debt recovery tactics.
The Government will provide protection to tenants by temporarily banning the use of statutory demands (made between 1 March and 30 June 2020) and winding up orders (presented from Monday 27 April, through to 30 June), where a company cannot pay their bills due to coronavirus. The measures will be included in the Corporate Insolvency and Governance Bill, which the Business Secretary, Alok Sharma, set out earlier this month.
The Government is also laying secondary legislation to provide tenants with more breathing space to pay rent by preventing landlords using Commercial Rent Arrears Recovery (CRAR) unless they are owed 90 days of unpaid rent.
You can read the government’s announcement by clicking the link below.