High street retailers hardest hit by coronavirus receive reprieve as evictions halted until autumn
As the mobility retail sector starts on the road to recovery, the UK government has extended measures to prevent struggling companies from eviction over the summer.
The Coronavirus Act will extend the time period for suspension of the forfeiture of evictions from June 30th to September 30th, ensuring no business will be forced out of their premises if they a miss a payment in the next three months.
“As our high streets come to life and our town centres open for business, it is crucial that both landlords and tenants have clarity and reassurance as they seek to keep their finances stable and bounce back,” said Communities Secretary Rt Hon Robert Jenrick MP.
“That is why we are extending measures to protect those who are unable to pay rent from eviction so that businesses have the security they need to plan for their futures.”
Alongside the extension to a halt on business evictions, the government has confirmed it will lay secondary legislation to prevent landlords using Commercial Rent Arrears Recovery unless they are owed 189 days of unpaid rent – the time period for which this measure is in force will also be extended to September 30th.
Additionally, an amendment to the Corporate Insolvency and Governance Bill has been tabled which will extend the temporary ban on the use of statutory demands and winding-up petitions where a company cannot pay its bills due to coronavirus until 30th September.
Business Secretary Alok Sharma MP said: “During this particularly challenging time for businesses, our retail stores are safely welcoming shoppers back and taking the necessary steps to drive economic recovery.
“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.”
In addition to the extended measures, a new code of practice has been published by the government to encourage commercial tenants and landlords to work together to protect viable businesses.
According to the Ministry of Housing, Communities & Local Government, the code will provide clarity for businesses when discussing rental payments and encourage best practice so that all parties are supported.
“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,” added Robert Jenrick.
The code is voluntary for businesses and is relevant to all commercial leases held by businesses in any sector which have been impacted by the coronavirus pandemic.
In particular, it encourages tenants to continue to pay their rent in full if they are in a position to do so and advises that others should pay what they can, whilst acknowledging that landlords should provide support to businesses if they too are able to do so.
