In a move which has shocked the property industry, the government has extended the ban on commercial lease forfeiture again, this time for a further nine months to 25 March 2022. Commercial Rent Arrears Recovery is similarly deferred, with tenants having to have built up 554 days of unpaid rent before landlords are able to take bailiff action.
A new scheme has also been introduced to support businesses affected by Covid closures, intended to “ringfence” rent arrears built up during the periods of enforced closure due to the pandemic. Under the scheme, disputes between landlords and tenants will be subject to a binding arbitration process before taking the matter to court. This boat will largely have sailed by now, with many landlords and tenants having either made their own agreements or proceedings having been issued in line with current requirements.
Regulations are also set to be introduced extending restrictions on the issue of statutory demands and winding up petitions where debts relate to the pandemic for a further three months, until 30 September 2021. In reality, the ability to pursue insolvency action is more valuable to the majority of landlords than the ability to forfeit. Whether this deadline will be pushed out again is yet to be seen.
You can read the government’s full press release here: https://bit.ly/2SE3BZS