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Government bans business evictions until the end of the year

Posted: 7th October 2020   In: Commercial Property, Dispute Resolution

The government has extended its ban on landlords evicting businesses until the end of the year. The move is in response to the continuing COVID-19 crisis.

Ministers say that where companies can pay their rent, they should do so, as this support is aimed at those businesses struggling the most during the pandemic. It’s hoped it will enable them to remain in their premises, giving them the chance to focus on rebuilding their services over the autumn and Christmas period.

Business Secretary Alok Sharma said: “During this particularly challenging time, it is crucial that both landlords and tenants have the clarity and reassurance they need to build back better from the pandemic.

“This extension will protect businesses that are struggling to pay their rent due to the impact of COVID-19 from being evicted and help the thousands of people working in these sectors feel more secure about their jobs.” 

The government will also extend the restriction on landlords using Commercial Rents Arrears Recovery to enforce unpaid rent on commercial leases until the end of the year.

In June, the government published a Code of Practice for how landlords and tenants should work together to agree rent payment options if businesses are struggling.

The code was produced alongside leading businesses and trade associations to help guide and encourage all parties to work together to protect viable businesses and ensure a swift recovery.

Please contact Holly Baker or Simeon Clipstone if you would like more information about the issues raised in this article or any aspect of commercial property law.

Posted by: Holly Baker
Dispute Resolution
Luton Office