Government extends moratorium on occupier evictions

The government is extending its moratorium blocking landlords from evicting distressed occupiers, as part of its measures to support high street businesses affected by the Covid-19 pandemic. The moratorium on commercial landlord sanctions was introduced in March, starting with an initial three-month period. The government had also temporarily banned landlords from issuing statutory demands and winding-up petitions against companies unable to pay rents owing to the coronavirus pandemic. These temporary measures have now been extended to 30 September. Secondary legislation will also be laid out to prevent landlords using commercial rent arrears recovery, unless they are owed 189 days of unpaid rent. The time period for this measure will similarly be extended to the end of September. Additionally, a voluntary code of practice has been issued for landlords and tenants, designed to support commercial property landlords during rent negotiations with tenants. The guidance, developed with organisations including the British Property Federation and Revo, sets out expectations that occupiers and landlords should share costs and risks arising from Covid-19 in a measured way. It advises tenants to pay as much rent as they can, and for landlords to show leniency where they can afford it. The advice has been published ahead of the next quarterly rent deadline, on 24 June. Communities secretary Robert Jenrick said: “As our high streets come to life and our town centres open for business, it is crucial that both landlords and tenants have clarity and reassurance as they seek to keep their finances stable and bounce back. “That is why we are extending measures to protect those who are unable to pay rent from eviction so that businesses have the security they need to plan for their futures. “And in recognition of the strain that the virus has had on our high streets, our new code, backed by leaders across the industry, will help unlock conversations on rent and future payments whilst ensuring best practice is displayed across the board as we confront the challenges of this pandemic.” Melanie Leech, chief executive of the BPF, said: “The code of practice published today builds on the many examples of good practice and reinforces the importance of constructive collaboration – not only over the next few months and once the government’s temporary legislative interventions come to an end later this year, but for the long term. “The success of landlords and tenants working together as economic partners is vital to the UK’s recovery and to help ensure that viable businesses in distress as a result of coronavirus are supported, to protect both people’s jobs and the local authorities, savers and pensioners who own the majority of our town centres.” Peter Cosmetatos, chief executive of the Commercial Real Estate Finance Council, said: “This code cannot magically plug revenue holes, but it sends a strong signal that good faith engagement and financial transparency are essential if commercial tenants and landlords are to find their way through this crisis.” Vivienne King, chief executive of Revo, said: “There are many cases of owners and occupiers collaboration in managing loss of income, which the code of practice reflects and we will continue to support government in identifying the potential measures to address this loss of income, which not only impacts owners and occupiers, but the wider economy including the savers and pensioners who depend upon it.” To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette