We previously reported on the Government extension to the moratorium on the forfeiture of commercial properties until 25 March 2022 which applies to CRAR.
The Government published Supporting business with commercial rent debts on 4 August 2021. This policy statement provides the Government intends to:
– Create legislation to ring-fence commercial rent arrears accruing since March 2020 which has been caused by enforced closures due to the pandemic;
– Introduce a binding arbitration process, however, landlords and tenants are first expected to negotiate arrears, the arbitration process being used as a last resort;
– Publish principles to be used by landlords and tenants when negotiating rent arrears accruing because of the pandemic.
Despite the policy statement the moratorium will remain in place unless otherwise changed. This article applies only to the England and not Wales.
There are many issues to consider and we can advise on the different strategies available to a struggling landlord or tenant. If you would like further information or support call Matthew Blood on 02476 641642