Protection for Commercial Tenants under Review
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Protection for Commercial Tenants under Review

The Government is containing with it’s plans to extend protection for commercial tenants and has indicated that it will introduce a new ring-fencing and arbitration scheme. The new legislation to deal with the commercial rent arrears which have built up as a result of the Covid-19 pandemic.

The legislation is expected to be introduced before the end of the moratorium on forfeiture proceedings for non-payment of rent (25 March 2022).

The government has put forward the following proposals:-

  • To ringfence commercial rent arrears that built up since March 2020 (due to business closures), until restrictions for their sector were lifted. Once the arrears are ringfenced, landlords will not be able to forfeit the lease for non-payment of these arrears or take insolvency proceedings against the tenant for this debt.

  • To encourage landlords and tenants to negotiate in good faith and reach a solution where possible, using the principles set out in the revised Code of Practice (referred to below).

  • Landlords are expected to “share the financial burden with tenants” and “defer or waive entirely an appropriate proportion” of those ringfenced arrears.

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Mass Evictions Debated in the House of Lords
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Mass Evictions Debated in the House of Lords

Last Thursday, Lord Bird, the 75-year-old peer secured a one-hour ‘short’ debate that discussed the risk of mass evictions resulting from COVID-19-related poverty and “What steps the government will take to prevent such evictions?”.

The debate will be attended by Lord Greenhalgh the government’s spokesman on housing in the Lord, who will respond to the question and, it is widely believed, indicate how seriously ministers at the housing and justice ministries about once again extending the evictions ban.

To ask Her Majesty’s Government what assessment they have made of the risk of mass evictions resulting from COVID-19-related poverty; and what steps they will take to prevent such evictions.

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Housing Secretary extends support for renters during pandemic
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Housing Secretary extends support for renters during pandemic

Renters will continue to be supported during the ongoing national lockdown restrictions, with an extension to the ban on bailiff evictions.

Renters protected with ban on bailiff enforced evictions extended until 31 March

  • Exemptions in place for the most serious cases

  • Part of a wider package of support for renters during the pandemic

Renters will continue to be supported during the ongoing national lockdown restrictions, with an extension to the ban on bailiff evictions, Housing Secretary Robert Jenrick announced today (14 February 2021).

The ban on bailiff evictions - which was introduced at the start of the pandemic - has been extended for another 6 weeks - until 31 March - with measures kept under review in line with the latest public health advice.

Exemptions remain in place for the most serious circumstances that cause the greatest strain on landlords as well as other residents and neighbours, such as illegal occupation, anti-social behaviour and arrears of 6 months’ rent or more.

The measures are part of a wide-ranging package of support the government has provided to protect renters from the economic impact of the pandemic, including supporting businesses to pay staff through the furlough scheme and strengthening the welfare safety-net by billions of pounds.

Landlords are also required to give 6-month notice periods to tenants before starting possession proceedings, except in the most serious circumstances, meaning that most renters now served notice can stay in their homes until at least August 2021, with time to find alternative support or accommodation.

For those renters who require additional support, there is an existing £180 million of government funding for Discretionary Housing Payments for councils to distribute to support renters with housing costs.

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