Measures extended to halt evictions on the high street this summer

The UK Government has published a new code of practice, designed to offer clarity for high street firms when discussing commercial rent with landlords as the coronavirus lockdown begins to ease.

Struggling companies, which have been shielded from eviction of their commercial premises since March, will also be further protected until the end of September as part of these new measures.

A statutory instrument is due to be laid to amend and extend the Coronavirus Act, moving the suspension of the forfeiture of evictions to 30th September. This should ensure no business will face eviction should they fail to pay their rent during the summer months.

Secondary legislation will also be laid to stop commercial landlords utilising Commercial Rent Arrears Recovery until 30th September, so long as they are not owed more than 189 days of unpaid rent.

The current Corporate Insolvency and Governance Bill will also be amended, extending the temporary ban on landlords using winding-up petitions and statutory demands for unpaid rent during the coronavirus lockdown until 30th September.

Opening lines of communication between tenants and landlords

In addition, a new voluntary code, which applies to all commercial leases, encourages tenants to pay their rent in full whenever possible. It also recommends tenants to pay what they can whenever the full amount is not achievable.

Landlords will also be encouraged to support their tenants wherever possible, to help businesses in leisure and hospitality to get back on their feet.

Overall, the code encourages open and transparent communications between landlords and tenants. It also implores landlords to act responsibly and fairly by recognising the impact the COVID-19 lockdown has had on business’ finances.

These measures, developed in collaboration with leaders from the UK’s retail, property and hospitality sectors, should provide a ‘best practice’ framework for landlords and business to act in the next three months.

Communities Secretary, Robert Jenrick MP, said: “In recognition of the strain that the virus has had on our high streets, our new code, backed by leaders across the industry, will help unlock conversations on rent and future payments whilst ensuring best practice is displayed across the board as we confront the challenges of this pandemic.”

Business Secretary, Alok Sharma MP, said that these extended measures would give local businesses on the high street a chance to be “in the best position to bounce back”.

“By putting a stop to unreasonable evictions, these measures will protect jobs and provide further flexibility to our high street businesses that were trading successfully before the COVID-19 emergency, so they can focus on continuing to deliver for their customers and communities,” added Sharma.

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Date published 25 Jun 2020 | Last updated 25 Jun 2020