Business Evictions Ban Extended Until March Due to Covid

The government has extended the ban on business evictions until the end of March because of the continuing Covid pandemic.

Stephanie Johnson, Associate Solicitor at network partner Cartmell Shepherd Solicitors, provides an update.

There will also be a review of commercial landlord and tenant legislation, to address concerns that the current framework does not reflect the current economic conditions.

This final extension to protections from the threat of eviction will give landlords and tenants 3 months to come to an agreement on unpaid rent.

Ministers say that where businesses can pay all or some of their rent, they should do so, and that most commercial landlords have shown flexibility, understanding and commitment to protect businesses during an exceptionally challenging time.

The review will consider how to enable better collaboration between commercial landlords and tenants and how to improve the leasing process to ensure our high streets and town centres thrive as we recover from the pandemic and beyond.

Secretary of State for Housing Robert Jenrick said: “This support is for the businesses struggling the most during the pandemic, such as those in hospitality – however, those that are able to pay their rent should do so.

“We are witnessing a profound adjustment in commercial property. It is critical that landlords and tenants across the country use the coming months to reach agreements on rent wherever possible and enable viable businesses to continue to operate.”

The government will also extend insolvency measures on restricting statutory demands and winding up petitions until the end of March.

If you would like more information about the issues raised in this article please contact Stephanie on 01228 585245 or click here to send her an email.