U.K. Government Announces Extension on Commercial Rent Arrears Evictions Moratorium

March 10, 2021 Advisory

On 10 March 2021, the U.K. government announced an extension to 30 June 2021 of the moratorium on commercial rent arrears evictions.

Housing Secretary Robert Jenrick MP said:

“It is right that as we move through the roadmap, we ensure that businesses and renters continue to be supported.

“We have taken unprecedented action to support both commercial and residential tenants throughout the pandemic – with a £280 billion economic package to keep businesses running and people in jobs and able to meet their outgoings, such as rent.

“These measures build on the government’s action to provide financial support as restrictions are lifted over the coming months – extending the furlough scheme, business rates holiday and the Universal Credit uplift.”

This will come as a blow to commercial landlords who have had to bear the brunt of commercial tenants’ inability to pay rent and leave landlords unable to exercise the forfeiture provision in a commercial lease, nor to commence insolvency proceedings for failure to pay rent.

The extension is perhaps unsurprising given the recently announced phased ending of the COVID-19 restrictions in the U.K. In as much as the implementation of those restrictions are subject to constant review, it is perhaps realistic to expect that the commercial rental arrears moratorium will also be placed closely under review – and we could see it extended even further.

Visit our website to read a recent advisory on “The Future of Leasehold: The Government’s Plans to Reform Residential Property Laws” and more. Our attorneys will continue to share developments on this topic as they arise.

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