Published: 17/06/2021The government has confirmed that it is to extend it's moratorium on commercial property tenant evictions until 25th March 2022 at the earliest.
The government announced on Wednesday 16th June 2021 that a new arbitration "backstop" will be introduced in an attempt to resolve disputes between landlords and tenants. In short where landlords and tenants fail to agree a dispute the matter will be referred to arbitration where the outcome will be binding on both parties. Until the new legislation becomes law existing measures will remain in place.
The government's announcement comes as a huge relief to many tenants who have struggled during the Covid-19 pandemic ensuring they can continue to trade with financial debts accrued bumped down the road. The current moratorium on commercial property tenant evictions was due to come to an end on 30th June 2021.
Commercial Property rental debt grown significantly since March 2020. The British Property Federation has estimated that unpaid rent as at June 2021 is £7bn.
It should however be remembered that it's not only tenants that are struggling. Unpaid rent is causing significant problems for landlords and property owners who still have to service commercial mortgages and loans. Landlord's struggling with debt have currently been ignored by the government who have failed to recognise the importance of commercial property landlords who are important to the health of our town centres and economic growth. Whilst the majority of owners have agreed terms with tenants on unpaid rent the impact of Covid-19 and delays to reopening is still a major concern, especially to the hospitality industry.
The frustration for many landlords by the new government blanket announcement is that is that is enables many well capitalised businesses who can afford to pay rent, but are refusing to pay to continue abusing the system.
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