Three-month protection for commercial tenants

The Chancellor is expected to announce protection from forfeiture for commercial property tenants, in a key win for hospitality campaigners.

Following safeguards for residential renters announced last week, commercial tenants will get the same three-month protection, “in order to give them the same certainty”.

The new clause makes provision for a three-month moratorium on the ability of landlords of commercial properties to exercise any right of forfeiture that they may have due to the non-payment of rent by tenants.

The provision delays the right of forfeiture; it does not otherwise impinge on a landlord’s right to claim forfeiture or recover rent at the end of that period.

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.

”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.”