Exploitation of commercial property owners must end, says BPF

The British Property Federation is calling on all landlords – large and small – to provide evidence to government about the “extensive support” being provided to tenants and the pressure this is exerting on all property owners. The government launched a call for evidence earlier in the week. It wants to use the evidence to support its “decision-making on the best way to withdraw or replace these measures while preserving tenant businesses and the millions of jobs that they support”. The consultation, which ends on 4 May, will ultimately inform whether to further extend the ban on evictions, statutory demands and winding-up petitions (the moratoria), and how discussions on dealing with unpaid commercial rent should be managed. Commercial property owners’ contractual rights have been suspended for more than a year and the BPF is calling on landlords to use the call for evidence as a “critical opportunity” to tell the full story of the impact the moratoria has had on them. BPF chief executive Melanie Leech said: “It is vitally important that property owners large and small respond to the government’s call for evidence – reporting on the wide range of ways in which they are supporting tenants – from rent freezes, waivers and referrals to more flexible payment plans. “Equally, some property owners have had no income for over a year and the call for evidence provides them with an opportunity to make sure the government understands the hardship this is causing small businesses, pensioners and savers.” She added: “The BPF intends to act as a channel for the whole property sector to unite and speak. No rational property owner will want to see failing businesses – and it makes little sense, after over a year of support, to let tenants fall at this final hurdle as our high streets reopen. “With many outdoor eating areas fully booked up for months on end, significant consumer demand should give both tenants and property owners the confidence today to forge a more positive future together. The government, however, cannot allow this scandal of tenants who can but won’t pay rent to continue.” The government’s Code of Practice makes clear that tenants that can afford to pay their rent and other charges should do so and that where support is needed, they must seek agreement with property owners and be prepared to provide financial information to demonstrate clearly why this support is required. The BPF said that commercial property owners across the country have been supporting tenants in genuine distress with rent write-offs, holidays, deferrals and new payment plans, which  has meant absorbing significant losses in rental income, with little or no direct support from the government. It says the “exploitation of commercial property owners”  must end. To send feedback, e-mail samantha.mcclary@egi.co.uk or tweet @samanthamcclary or @estatesgazette