Further halt to business evictions and more support for high street firms

The UK government has extended measures to prevent struggling companies from eviction over the summer.

The extension, until the end of September, comes alongside further support to help local businesses plan for economic recovery following the coronavirus pandemic.  

According to the government, a new code of practice has been developed with leaders from the retail, hospitality and property sectors to provide clarity for businesses when discussing rental payments and to encourage best practice so that all parties are supported.

The code is voluntary for businesses and is relevant to all commercial leases held by businesses in any sector which have been impacted by the coronavirus pandemic. 

It encourages tenants to continue to pay their rent in full if they are in a position to do so and advises that others should pay what they can, while acknowledging that landlords should provide support to businesses if they too are able to do so.

"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," said Communities Secretary Robert Jenrick.

"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." 

Also commenting on the new code, Business Secretary Alok Sharma said that the government's aim is to get a many high street businesses as possible to emerge from the pandemic, in the best position to bounce back.

"During this particularly challenging time for businesses, our retail stores are safely welcoming shoppers back and taking the necessary steps to drive economic recovery," said Mr Sharma.

"By putting a stop to unreasonable evictions, these measures will protect jobs and provide further flexibility to our high street businesses that were trading successfully before the COVID-19 emergency, so they can focus on continuing to deliver for their customers and communities."

Across the UK, the code will encourage tenants and landlords to be transparent in their discussions and to act reasonably and responsibly while recognising the impact that coronavirus has had on businesses’ finances. 

The UK government has confirmed the following changes to the existing package of measures for the commercial sector:

• It will lay a statutory instrument to amend the Coronavirus Act to extend the time period for suspension of the forfeiture of evictions from 30 June to 30 September, meaning no business will be forced out of their premises if they a miss a payment in the next three months.
• It will also lay secondary legislation to prevent landlords using Commercial Rent Arrears Recovery unless they are owed 189 days of unpaid rent. The time period for which this measure is in force will be extended from 30 June to 30 September. 
• An amendment to the Corporate Insolvency and Governance Bill has been tabled that will extend the temporary ban on the use of statutory demands and winding-up petitions where a company cannot pay its bills due to coronavirus until 30 September.