The government has announced that any commercial tenants who fail to pay rent due to the Coronavirus outbreak will be protected from eviction.
Many landlords and tenants throughout the United Kingdom have already agreed upon rental payment arrangements, however the government has also recognised businesses struggling with cash flow due to Coronavirus.
These measures, included in the emergency Coronavirus Bill currently going through Parliament, will mean no business will be forced out of their premises if they miss a payment in the next 3 months.
As commercial tenants will still be liable for rent after this period, the government are continuing to monitor the impact on commercial landlords’ cash flows.
Communities Secretary, Rt Hon Robert Jenrick MP, said:
“We are protecting both people and their businesses by providing the urgent support they need.
We know many commercial landlords are already setting a great example by working closely with tenants and offering rent deferrals or holidays.
However, these new measures will provide reassurance to businesses struggling with cashflows and ensure no commercial tenant is evicted if they cannot pay their rent because of coronavirus over the next 3 months.”
The Chancellor of the Exchequer, Rishi Sunak MP, said:
“We are taking unprecedented action and doing so at unprecedented speed, because we know that businesses and their employees need help now.
That is why we are taking steps to change the law so that no company can be forced out of its premises due to loss of income. Alongside our support for workers and £330 billion of business loans and guarantees, this will help make a real difference to firms across the country trying to protect jobs.”
Business Secretary, Alok Sharma MP said:
“This measure will provide companies with an essential safeguard in these highly unusual times as they deal with the impact of coronavirus.
This is part of the unprecedented package of support we have put in place to protect jobs and livelihoods right across the country.”
The Coronavirus Bill will also introduce new measures ensuring that Business Improvement Districts (BID) are equipped to continue their role in managing the impact of this crisis on local economies.
To ensure no area loses its Business Improvement District at this critical time, emergency legislation will allow a delay to ballots between now and 31 December 2020 until March 2021. This will ensure that they are conducted in a safe and effective way.
Simon Quin, High Streets Task Force Executive Director, said:
“These are important steps that will strengthen town centres and commercial areas as they prepare for the future.
They will encourage retention of occupancy and ensure Business Improvement Districts can focus on support for their local areas through the emergency and into recovery. This will make places more resilient.”