FURTHER PROTECTION FOR THE HIGH STREET

NEW MEASURES TO PROTECT UK HIGH STREET FROM AGGRESSIVE RENT COLLECTION AND CLOSURE

On the 23 April the Business Secretary announced high street shops and other companies under strain will be protected from aggressive rent collection and asked to pay what they can during the coronavirus pandemic.

The majority of landlords and tenants are working well together to reach agreements on debt obligations, but some landlords have been putting tenants under undue pressure by using aggressive debt recovery tactics. I personally have also heard of cases of companies struggling with potential rent increases despite the current outbreak.

• Government to introduce temporary new measures to safeguard the UK high street against aggressive debt recovery actions during the coronavirus pandemic;
• The government will temporarily ban the use of Statutory demands (made between 1 March 2020 and 30 June 2020) Statutory demands issued to commercial tenants will be temporarily voided, where a company cannot pay its bills due to coronavirus;
• Winding up petitions issued the government will temporarily ban the use of statutory demands (made between 1 March 2020 and 30 June 2020) to commercial tenants will also be temporarily voided, where a company cannot pay its bills due to coronavirus
• Government is also laying secondary legislation making changes to be made to the use of Commercial Rent Arrears Recovery (CRARs), building on measures already introduced in the Coronavirus Act to provide tenants with more breathing space to pay rent by preventing landlords using Commercial Rent Arrears Recovery (CRAR) unless they are owed 90 days of unpaid rent.
• As a result landlords and investors asked to work collaboratively with high street businesses unable to pay their bills during COVID-19 pandemic. Tenants are however, being asked to pay what they can afford to pay, and for Landlords and tenants to work together.

This new legislation will be in force until 30 June, and can be extended in line with the moratorium on commercial lease forfeiture.

These measures come on top of a substantial package of business support measures, including a moratorium on evictions for commercial tenants for at least a 3-month period, which includes a suspension of forfeiture rights, which prevents all commercial tenants from being removed from their properties until 30 June.

Should you need assistance with negotiations or help and support considering the longer term options please do not hesitate to contact our Licensed Insolvency Practitioner for a FREE consultation on Tel: 07972928153 and email: lucinda@lminsolvency.co.uk