The government has extended the commercial evictions moratorium until the end of June, in a move that will bring relief to struggling high street retail and hospitality businesses.
The moratorium was first unveiled by the government last year in response to the coronavirus pandemic and was due to expire at the end of this month.
However, with non-essential retail businesses not due to reopen in England until April 12 at the earliest, and pubs and restaurants not allowed to fully reopen until June 21, communities secretary Robert Jenrick has extended the ban to June 30.
Jenrick also extended the requirement for residential landlords to provide six-month notice periods to tenants before they evict until at least May 31.
He said: “It is right that as we move through the roadmap, we ensure that businesses and renters continue to be supported.”
Business secretary Kwasi Kwarteng added: “We’re doing everything we can to ensure businesses get the support they need to get through this pandemic and reopen when it is safe to do so.”
BRC chief executive Helen Dickinson welcomed the announcement, saying it gave retailers “much needed breathing space”.
“After months of lockdown, this announcement provides much-needed breathing space to retailers, many of which are sitting on rising rent liabilities. Retailers have lost over £22bn of sales during the three lockdowns, and the ban on aggressive rent enforcement is vital protection against being pushed into administration by landlords.
“Where new rent plans have not yet been agreed, tenants and landlords must use this final opportunity to reach a deal before 30 June,” she said.
While the announcement will be well received by occupiers, it will cause further division with landlords. Jenrick today reiterated that the businesses that can pay rent should continue to do so, but landlords have said many companies used the moratorium as cover for not paying up.
British Property Federation chief executive Melanie Leech said: “The government has acknowledged that the majority of tenants and property owners are working well together – with tenants being transparent about their finances, and property owners supporting those in distress with emergency relief and new, longer-term rent payment arrangements.
“New, stronger relationships have been built through this process. Nevertheless, there is a minority where relationships have broken down and become toxic, and the continuation of the moratorium will do nothing to unlock the stalemate and allow the market to reset and recover.”
The government have also opened a call for evidence for what should happen beyond June 30.
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