Measures protecting commercial tenants extended until 30 June 2021

The Government has extended the moratorium on forfeiture for business tenancies until 30 June 2021.

In the press release announcing the extension the Government stated its current position was to support commercial landlords and tenants in agreeing their own arrangements for paying or writing off rent debts by 30 June. It referenced the code of conduct published last year, which states that businesses that are able to pay all or any of their rent should do so.

The Government also announced a call for evidence on commercial rents to help monitor the overall progress of negotiations between landlords and tenants. It will set out the potential steps that the Government could take after 30 June, which could range from a phased withdrawal of current protections to legislative options targeted at those businesses most impacted by COVID-19.

The Government has extended the restriction on the use of the Commercial Rent Arrears Recovery (CRAR) process by landlords. Landlords will be unable to take action between:

• 25 March and 23 June unless they are owed an amount equal to or exceeding 457 days rent
• 24 and 30 June unless they are owed an amount equal to or exceeding 554 days rent.

Also extended until 30 June 2021 are:

• the temporary ban on the use of statutory demands as the basis for winding up petitions; and
• measures restricting winding up petitions being presented and winding up orders being made unless it can be shown that COVID-19 has not had a financial effect on the company in question (or, even if it has, that the relevant ground for winding up would have been satisfied anyway).