UK Government Proposes New Code of Practice and Legislation to Address Remaining COVID-Related Commercial Rent Debts
Since 26 June 2020, a broad moratorium has protected commercial tenants from many types of hostile action that might otherwise have been taken by landlords for non-payment of rent accrued during the COVID-19 pandemic. Having been extended a number of times, that moratorium is due to end on 25 March 2022.
The UK government has consistently urged landlords and tenants to discuss and negotiate a commercial agreement with respect to how such rent arrears should be dealt with (particularly in situations where the tenant is not in a position to pay them). It appears that the vast majority have now been resolved by agreement. However, the government announced on 16 June 2021 that rules would be introduced to address those arrears where this has not been, and cannot be, achieved consensually. Almost five months on, we now have further details of how this is proposed to work.