The Government of UK has notified protection from eviction for businesses in need via Press Release dated June 16, 2021. The government has announced that the businesses that remained closed during the pandemic and are unable to pay rent on their commercial property will continue to be protected from eviction, giving them the breathing space they need and helping to protect jobs.
Key features, announced by the government are as follows:
- The Government has announced that new legislation will be introduced to ringfence COVID-19 commercial rent arrears and guide tenants and landlords to agree repayment plans for these specific periods of closure due to the pandemic, and share the financial impact with their tenants.
- The existing measures to protect commercial tenants have been extended to March 25, 2022, to ensure that the sectors that are unable to open have enough time to come to an agreement with their landlord without the threat of eviction.
- The legislation will aid tenants and landlords to work together to come to an agreement on how to handle the money owed, by either waiving some of the total amount or agreeing a longer-term repayment plan.
- This agreement between the tenant and landlord will be a legally binding agreement that both parties must adhere to. If in some cases, an agreement cannot be made, the law will ensure a binding arbitration process will be put in place so that both parties can come to a formal agreement.
- In order to ensure landlords are protected, the government has clarified that those businesses that are able to pay rent, must do so. Tenants should start paying their rent as soon as restrictions change, and they are given the green light to open.
- The statutory demands and winding up petitions shall remain restricted for a further three months to protect companies from creditor enforcement action where their debts relate to the pandemic.
*Tanvi Singh, Editorial Assistant has put this story together.