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Previously the government introduced a moratorium on the eviction of commercial tenants for non-payment of rent until the end of June 2021. This has now been extended.
The government has now extended the current protections for commercial tenants against eviction to 25 March 2022, unless legislation is passed ahead of this.
Other restrictions have also been extended to the same date including, restricting the ability of landlords to seize goods owned by tenants in lieu of rent owed unless the tenant has more than 554 days’ worth of rent arrears.
The government will legislate to ringfence rent debt accrued during the pandemic by businesses affected by enforced closures. New laws and a Code of Practice are due to be published by government to assist landlords and tenants.
As soon as the new laws are passed, the commercial tenant protection measures will only apply to ringfenced arrears. This includes rent debt accrued from March 2020 by commercial tenants affected by COVID-19 business closures until restrictions for their sector are removed.
Currently after March 2022, Landlords will be able to evict tenants for the non-payment of rent accrued prior to March 2020 and non-payment for rent accrued after the end of restrictions for their sector and who have not been affected by business closures during this period.
Full details of the governments proposals can be found in their latest publication at Supporting businesses with commercial rent debts: policy statement - GOV.UK (www.gov.uk)
This article is intended for general information purposes only and should not be relied upon in place of specific legal advice. If you have a landlord and tenant related query then please do not hesitate to contact our litigation team for advice and assistance.