Added on: 24th March, 2020 by O1
Commercial tenants who cannot pay their rent because of coronavirus will be protected from eviction.
• Commercial tenants unable to pay rent because of coronavirus will be protected from eviction
• Measures support ongoing conversations between landlords and tenants about voluntary arrangements
• Latest measure in addiiton to package of support for businesses already announced
Commercial tenants who cannot pay their rent because of coronavirus will be protected from eviction, the government has announced.
Many landlords and tenants are already having conversations and reaching voluntary arrangements about rental payments due shortly but the Government recognises 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.
As commercial tenants will still be liable for the rent after this period, the Government is also actively monitoring the impact on commercial landlords’ cash flow and continues to be in dialogue with them.
Communities Secretary, Rt Hon Robert Jenrick MP, said:
"We are protecting both people and their businesses by providing the urgent support they need.
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."
The Chancellor of the Exchequer, Rishi Sunak MP, said:
"We are taking unprecedented action and doing so at unprecedented speed, because we know that businesses and their employees need help now.
That is why we are taking steps to change the law so that no company can be forced out of its premises due to loss of income. Alongside our support for workers and £330 billion of business loans and guarantees, this will help make a real difference to firms across the country trying to protect jobs."
Business Secretary, Alok Sharma MP said:
"This measure will provide companies with an essential safeguard in these highly unusual times as they deal with the impact of coronavirus.
This is part of the unprecedented package of support we have put in place to protect jobs and livelihoods right across the country."
Read about the government support for businesses HERE
Read the government guidance for employers and businesses HERE