Businesses that fail to pay rent due to Covid-19 won’t be evicted

Commercial tenants who cannot pay their rent due to Covid-19 will be protected from eviction under new legislation.

Many landlords and tenants are already having conversations and reaching voluntary arrangements about rental payments, but the government says it recognises that businesses struggling with their cashflow due to coronavirus remain worried.

The emergency Coronavirus Act provides that no business will be forced out of their premises if they miss a payment in the next 3 months.

As commercial tenants will still be liable for the rent after this period, the government is also actively monitoring the impact on commercial landlords’ cash flow and continues to speak with them.

Communities Secretary, Rt Hon Robert Jenrick MP, said: “We know many commercial landlords are already setting a great example by working closely with tenants and offering rent deferrals or holidays.

“However, these new measures will provide reassurance to businesses struggling with cashflows and ensure no commercial tenant is evicted if they cannot pay their rent because of coronavirus over the next 3 months.”

The Coronavirus Bill measures on commercial leases will apply to all commercial tenants in England, Wales and Northern Ireland.

The change will last until 30 June, with an option for the government to extend if needed.

If you would like more information about the issues raised in this article or any aspect of commercial property law please contact Stephanie on 01228 516666.

By Stephanie Johnson Associate Solicitor