Commercial tenants protected from eviction

Commercial tenants who cannot pay their rent because of coronavirus will be protected from eviction, the government has announced.

While many landlords and tenants are already having conversations and reaching voluntary arrangements about rental payments due shortly, the Government said it recognised businesses struggling with their cashflow due to coronavirus remain worried about eviction.

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 three months.

This builds on the package of support announced for businesses who are affected by coronavirus.

As commercial tenants will still be liable for the rent after this period, the government is also monitoring the impact on commercial landlords’ cash flow and continues to be in dialogue with them.

Communities Secretary Robert Jenrick said: “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 three months.”

Chancellor of the Exchequer Rishi Sunak added the government was taking “unprecedented action… at unprecedented speed”.

The government has previously announced a jobs retention scheme to protect workers, and £330 billion of business loans and guarantees.

The Coronavirus Bill also includes new measures to ensure that Business Improvement Districts (BID) are equipped to continue their vital role in managing the impact of the crisis on local economies and helping town centres and high streets recover.

London Union’s Jonathan Downey, who has campaigned for the concessions alongside UK Hospitality, said: “This will make an enormous difference to so many business owners, saving countless jobs and livelihoods. It gives us all a breathing space to negotiate a way forward with our landlords. It is a cease fire to agree the peace. It gives tenants leverage to secure better deals. It’s great news and it may yet be extended.”

Kate Nicholls, CEO of UK Hospitality, tweeted: “[This] eases the pressure cooker of quarter rent day and allows us to focus all available cash on supporting our teams.

”[It is a ] valuable pause to allow sensible discussions about realistic payment going forward and when it is feasible to resume. Hope landlord companies are pragmatic and responsible. Govt also reminds all biz that lending is available to get through short term hiatus.”