The ban on evicting commercial tenants to be extended

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22 June, 2021

The ban on evicting commercial tenants was due to be lifted on 30th June 2021, however the government announced on 16th June 2021 that this will be extended to 25th March 2022 to help those worst affected by the pandemic and who are still suffering due to ongoing restrictions.

The government is planning on bringing in new legislation. This will enable any debt between Commercial Landlords and Tenants to be resolved in an orderly manner. If negotiations fail to resolve the issues, then compulsory arbitration will commence.

This extension will only delay landlords' rights but does not affect a landlords' right to forfeiture after the 25th March 2022.

What does this mean for landlords?

It will undoubtedly impact upon a landlord's own cash flow in some cases. It is important that landlords assess their position and resolve any matters with their tenants trying to negotiate to reach an agreement.

The Government is making it clear that businesses who are able to pay rent must continue do so.

What other options do I have?

If your tenant is in breach of any other term of their lease, you could consider forfeiture on that basis. Forfeiture on the basis of breaches not related to rent arrears are not impacted by the extension of the moratorium.

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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