Commercial tenants who cannot pay their rent because of the coronavirus will be awarded extra protection from eviction, it has been revealed.
The amendment to the Coronavirus Bill on commercial leases will apply to England, Wales and Northern Ireland and will last until 30 June 2020.
According to Government guidance, landlords and tenants should attempt to reach a voluntary arrangement about rental payments should a tenant feel unable to pay their bills. However, the new rules will give commercial tenants added protection from eviction.
Commenting on the move, Communities Secretary, Robert Jenrick, 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 three months.”
Mike Cherry, Federation of Small Businesses National Chairman, welcomed the move, saying the measure will give “peace of mind to millions of small businesses who are desperately struggling with their cash flow”.
“We know sensible conversations between landlords and commercial tenants are taking place – but having this legislative backstop to prevent evictions during the worst of the crisis will provide much-needed peace of mind for many small businesses.”
The measure forms part of the Government’s £330 billion emergency response package designed to help businesses affected by the Covid-19 pandemic.
In similar announcements, Companies House, HMRC and the Charity Commission have also urged businesses and not-for-profit organisations to come forward if they are unable to meet their tax, reporting or statutory deadlines.
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