Government extends support for commercial and residential tenants

The government has extended the ban on evicting commercial tenants until 30th June 2021.

Natalie Tatton Solicitor in our Dispute Resolution team provides an update.

The move is designed to help those worst affected by the pandemic, such as bars and restaurants, get back to business when doors fully reopen for hospitality no earlier than 17th May.

Residential tenants will also be supported as the ban on bailiff-enforced evictions in all but the most serious circumstances – such as incidents of fraud or domestic abuse – and the requirement for landlords to provide 6-month notice periods to tenants before they evict will also be extended until at least 31st May.

This will ensure residents in both the private and social sector can stay in their homes and have enough time to find alternative accommodation or support as the country eases out of lockdown.

Ministers hope that with around 49% of hospitality workers and 36% of retail workers currently renting, the new measures will protect jobs as businesses reopen and many more renters can return to work.

The government says it will consider the best approach to moving away from emergency protections from the beginning of June, taking into account public health advice and the wider roadmap.

Its current position is to support commercial landlords and tenants to agree their own arrangements for paying or writing off rent debts by 30th June. This is supported by the code of conduct published by the government last year, setting out best practice for these negotiations.

If these discussions do not happen and there remains a significant risk to jobs, the government may take further steps. It is therefore launching a call for evidence on commercial rents to help monitor the overall progress of negotiations between tenants and landlords.

The call for evidence will also set out potential steps the government could take after 30th June, ranging from a phased withdrawal of current protections to legislative options targeted at those businesses most impacted by COVID-19.

We will continue to keep you informed of any further developments.

If you would like more information about the issues raised in this article please contact Natalie on 01228 585716 or click here to send her an email.