Government to protect commercial tenants from pandemic related evictions or debts

New laws and a Code of Practice are being introduced to resolve the remaining commercial rent debts accrued because of the pandemic.

Commercial tenants are protected from eviction until 25 March 2022, due to government action last year to provide firms with help and to protect jobs when certain businesses had to close in full or in part during the pandemic.

From 25 March 2022, new laws introduced in the Commercial Rent (Coronavirus) Bill, being introduced in Parliament today, will establish a legally-binding arbitration process for commercial landlords and tenants who have not already reached an agreement, following the principles in the Code of Practice.

Subject to Parliamentary passage, this will come into force next year.

The Bill will apply to commercial rent debts related to the mandated closure of certain businesses such as pubs, gyms and restaurants during the pandemic. Debts accrued at other times will not be in scope.

From today, the government is also protecting commercial tenants from debt claims, including County Court Judgements, High Court Judgements and bankruptcy petitions, issued against them in relation to rent arrears accrued during the pandemic.

Business Secretary Kwasi Kwarteng said: “Today’s measures provide commercial landlords and tenants with the clarity and certainty, they need to plan ahead and recover from the pandemic.

“We encourage landlords and tenants to keep working together to reach their own agreements ahead of the new laws coming into place, and we expect tenants capable of paying rent to do so.”