UPDATED June 2021 – Please click here to read the latest version of this article.
A quick recap
In March 2020 the UK Government imposed unprecedented restrictions in the face of the Covid-19 pandemic in relation to the forfeiture of commercial leases by enacting the Coronavirus Act 2020 and other business support measures. These introduced the following key restrictions on rent arrears recovery:
What is the effect of the Government announcement on 10 March 2021?
The Government has now turned to the real estate industry to provide evidence on the progress of rent arrears negotiations between landlords and tenants to best inform the Government’s next steps.
The announcement issued by the Ministry of Housing, Communities and Local Government refers to a “phased withdrawal of current protections” and “legislative options” targeting the sectors most affected by Covid.
A review of the Landlord and Tenant Act 1954 as well as different models of rent payment have also been suggested, which could mean changes that long outlast Covid.
If you have any questions about these issues please get in touch with a member of the team or speak with your usual Fox Williams contact.
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