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.
This builds on the unprecedented package of support announced for
businesses who are affected by coronavirus.
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 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, 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, 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.”
Mike Cherry, Federation of Small Businesses National Chairman,
said:
“Small businesses will wholeheartedly welcome the decision to ban
evictions for commercial tenants for three months.
“This will give piece of mind to millions of small businesses who
are desperately struggling with their cash flow.
“We know sensible conversations between landlords and commercial
tenants are taking place – but having this legislative backstop
to prevent evictions during the worst of the crisis will provide
much needed peace of mind for many small businesses.”
The Coronavirus Bill also includes new measures to ensure that
Business Improvement Districts (BID) are equipped to continue
their vital role in managing the impact of the crisis on local
economies and helping town centres and high streets recover.
To ensure no area loses its Business Improvement District at this
critical time, emergency legislation will allow a delay to
ballots between now and 31 December 2020 until March 2021. This
will ensure that they are conducted in a safe and effective way.
Simon Quin, High Streets Task Force Executive Director, said:
"These are important steps that will strengthen town centres and
commercial areas as they prepare for the future.
“They will encourage retention of occupancy and ensure Business
Improvement Districts can focus on support for their local areas
through the emergency and into recovery. This will make places
more resilient."
Further information
The amendment to the Coronavirus Bill on commercial leases will
apply to England, Wales and Northern Ireland. It applied to all
commercial tenants.
We will, of course, be working with the Devolved Administrations,
including Scotland, across our coronavirus response.
The change will come into force when the Coronavirus Bill
receives Royal Assent. It will last until 30 June, with an option
for the Government to extend if needed.
