Commercial Landlord And Tenant Update - June 2021
Published date | 23 June 2021 |
Subject Matter | Real Estate and Construction, Landlord & Tenant - Leases |
Law Firm | Goodman Derrick LLP |
Author | Ms Chloe E Benson |
On 16 June 2021, the Government announced that the measures which were put in place to assist commercial tenants during the Covid-19 pandemic will be extended beyond 30 June 2021 by a further 9 months until 25 March 2022. This means that landlords will be unable to forfeit commercial leases on the basis of rent arrears until after 25 March 2022.
The Government also announced its intention to introduce legislation to "ringfence" rent arrears which have accrued due to businesses having to remain closed during the pandemic.
This announcement will hopefully encourage landlords and tenants to reach an agreement on unpaid rent arrears. However, the Government has confirmed its intention to introduce a binding arbitration process to settle rent arrears disputes in circumstances where a settlement cannot be reached between landlords and tenants. This will be a legally binding agreement which must be adhered to by both parties and we are awaiting details of the draft Bill in order to have a clearer understanding as to exactly how the process will work and to whom it will apply.
The Ministry of Justice has also confirmed that the...
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