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23 July 2021 / Grace Mercer , Alison Sparks
Issue: 7942 / Categories: Features , Property , Landlord&tenant
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Landlord & tenant relationships: open for business?

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Alison Sparks & Grace Mercer report on commercial tenancies, rent arrears, & the importance of communication
  • Much uncertainty remains in relation to enforcement options for commercial rent arrears as a result of the COVID-19 pandemic.
  • Landlords and tenants should continue to engage with each other as much as possible in order to agree a way forward.

On 16 June 2021, the UK government announced that the existing restrictions on landlord’s enforcement options for commercial rent arrears would be extended until 25 March 2022. This includes forfeiture and Commercial Rent Arrears Recovery. It was also announced that there would be an extension to the end of September 2021 of the current restrictions against the use of statutory demands and winding-up petitions in respect of arrears of rent, unless those arrears were not as a result of the COVID-19 pandemic.

The government has also announced that they will introduce a new binding arbitration process for landlords and tenants who have not been able to agree concessions or payment plans. There is already in place a Code of Practice

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