Extension number... we've lost count

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Article

17 March, 2021

The Government has announced yet another extension on the ban on evictions for both residential and commercial properties.

Residential Property

On 10 March 2021, the moratorium on residential evictions which had been due to end on 31 March 2021, was extended until at least 31st May 2021.

This means that during this time, landlords of residential properties are unable to evict tenants unless one of the following applies:-

  • the tenant has at least 6 months' rent arrears.
  • there has been anti social behaviour.
  • the tenant is illegally occupying the property.

The extension also means that residential landlords will need to continue to give tenants six months' notice before they can repossess their property, with exception to the following circumstances:-

  • Over 6 months' accumulated rent arrears (four weeks' notice)
  • Anti-social behaviour (four weeks' notice)
  • False statements provided by the tenant (two to four weeks' notice)
  • Breach of immigration rules under the 'Right to Rent' policy (three months' notice).

Commercial Property

On 10 March 2021, the moratorium on commercial evictions which had been due to end on 31 March 2021, was extended until at least 30 June 2021. This is despite the fact that in December 2020, the Government stated that the extension until 31 March 2021 would be the 'final extension'.

The recent extension means that, a commercial landlord would be prevented from evicting tenants until at least 30 June 2021. There are no exceptions to this measure, unlike those provided in respect residential properties, as set out above.

The measure also restricts commercial landlords from effecting re-entry or forfeiture for any sums owed by the tenant until at least 31 June 2021.

The Government has also extended the restriction on the use of the Commercial Rent Arrears Recovery (CRAR) process by commercial landlords. This restriction will increase the total number of days' outstanding rent required for CRAR to be used to:

  • 457 days (between 25 March 2021 and 23 June 2021), and
  • 554 days (between the 24 June 2021 and 30 June 2021).

The restrictions set in place by the previous extension which mean that winding up petitions cannot be presented against a company based on a statutory demand served between 01 March 2020 and 31 March 2021, have not yet been extended beyond 31 March 2021. We expect to see this ban to be similarly extended.

For more information contact Samantha Abdoollah in our Dispute Resolution department via email or phone on 01254222456. Alternatively send any question through to Forbes Solicitors via our online Contact Form.

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