Earlier this year, Parliament introduced a list of extensive protections for commercial tenants to mitigate the economic fallout of Covid-19. The deadline for such protections was initially set for 30th September 2020. However, this deadline has now been extended until the end of the year. Below we explain the most recent developments, in particular Forfeiture and the CRAR Regulations.
On 25th March 2020, parliament passed The Coronavirus Act 2020 which came into force with immediate effect. This act prevents landlords from recovering outstanding rents for properties subject to commercial lease agreements.
Section 82 of the act essentially negates the landlords right to enforce forfeiture under a relevant business tenancy, for non-payment of rent. Initially the postponement of such rights was to run until 30th June 2020. However, the end date has now been deferred to 31st December 2020.
The Taking Control of Goods and Certification of Enforcement Agents (Amendment) (Coronavirus) Regulations 2020 came into force 25th April 2020. Before this date, the minimum notice required for CRAR was 7 clear days excluding Sundays and Bank holidays. This has been temporarily increased substantially to 90 days. Thus, preventing landlords from taking more pugnacious approaches to outstanding arrears and protecting businesses during uncertain times.
The Government has been presented with a monumental challenge to protect business’s, jobs and our economy. As we enter a second wave of the pandemic it is yet to be seen if they can achieve this objective. The extension is welcomed by struggling tenants who will undoubtedly benefit from such measures. However, this offers little reassurance to commercial landlords whose tenants have defaulted. As many of the remedies for commercial landlords have once again been postponed.
- Multinational Developers
- Private Developers
- Housing Associations
- Housing Trusts
- Retail Units
- Leisure & Sports Facilities
- Private Investment Schemes