Rules preventing landlords from evicting commercial tenants affected by Covid-19 will be extended until the end of September, it has been revealed.
The announcement comes as the Government publishes a new Code of Practice to “support shops and firms planning their recovery with their landlord”.
Under the extended rules, the Coronavirus Act will be extended from 30 June to 30 September 2020, meaning no commercial tenant who misses a payment in the next three months can be evicted from their premises.
Likewise, secondary legislation preventing landlords using Commercial Rent Arrears Recovery unless they are owed 189 days of unpaid rent will also be extended from 30 June to 30 September 2020.
Commenting on the measures, Communities Secretary Robert Jenrick said: “As our high streets come to life and our town centres open for business, it is crucial that both landlords and tenants have clarity and reassurance as they seek to keep their finances stable and bounce back.
“That is why we are extending measures to protect those who are unable to pay rent from eviction so that businesses have the security they need to plan for their futures.”
The extension comes as the Government publishes a new Code of Practice for commercial tenancies. The code – developed in collaboration with “leaders from the retail, hospitality and property sector” – sets out best practice for negotiations between commercial landlords and tenants affected by Covid-19.
According to the Government, the code “encourages tenants to continue to pay their rent in full if they are in a position to do so” but reminds landlords that they have a responsibility to “provide support to businesses” if they are able to.
To access the Code of Practice, please click here.
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