Government launches commercial rents consultation
The government has launched its call for evidence on commercial rents, which is being carried out to help determine its next steps after the moratorium on lease evictions ends.
The consultation focuses on the commercial property moratorium, which was recently extended to 30 June, as well as its restrictions on using rent arrears recovery, winding-up petitions and statutory demands.
By doing this, it seeks to “inform” government policy regarding an exit from these measures as well as any need for additional action, as outlined last month.
The government has launched its call for evidence on commercial rents, which is being carried out to help determine its next steps after the moratorium on lease evictions ends.
The consultation focuses on the commercial property moratorium, which was recently extended to 30 June, as well as its restrictions on using rent arrears recovery, winding-up petitions and statutory demands.
By doing this, it seeks to “inform” government policy regarding an exit from these measures as well as any need for additional action, as outlined last month.
As part of the consultation, the government will gather evidence on how landlords and tenants are responding to the build-up of rent arrears that have occurred as a result of businesses being unable to trade normally during the pandemic.
The Ministry of Housing, Communities and Local Government said this will inform a “better understanding of the risk to economic recovery posed by remaining rent debts”, and how existing lease terms are being adjusted to reflect the recovery period for affected businesses once trading restrictions are lifted.
Views are sought from businesses, business representative organisations, commercial landlords, lenders, and investors and their representative organisations, commercial property professionals, and anyone with an interest in or connection to the commercial property market in England.
The government said it is “particularly interested” in the views of small to medium-sized businesses, including small commercial landlords, independent businesses and sole traders with leased premises.
The deadline for responses is the end of 4 May.
“This call for evidence will support the government’s decision making on the best way to withdraw or replace these measures while preserving tenant businesses and the millions of jobs that they support,” stated MHCLG.
“If there is evidence that productive discussions between landlords and tenants are not taking place, and that this represents a substantial and ongoing threat to jobs and livelihoods, the government will not hesitate to intervene further.”
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