Government extends commercial evictions ban until April

Housing secretary Robert Jenrick said today the moratorium on evictions would be extended until the end of March to help struggling businesses “recover from the impact of the pandemic and plan for the future”.

However, unlike previous extensions, Jenrick ruled out extending the moratorium beyond April, calling the latest measures “the final extension to protections from the threat of eviction”.

Jenrick called on landlords and tenants to use the extra time to “come to an agreement on unpaid rent” and reiterated that all businesses that can afford to pay rents should do so. 

He also promised “further guidance to support negotiations between landlords and tenants” would be published soon.

“We are witnessing a profound adjustment in commercial property. It is critical that landlords and tenants across the country use the coming months to reach agreements on rent wherever possible and enable viable businesses to continue to operate,” said Jenrick. 

While the extension has been met with “resignation” by many landlords, according to EY, the government giving a firm deadline for the end of such measures has been welcomed by property groups. 

British Property Federation chief executive Melanie Leech said: “Today the government has confirmed that it is time to plan for the future and give the commercial real estate sector the clarity it needs in order to play its fundamental role in the UK’s recovery from the impacts of Covid-19.

“Ministers have rightly highlighted and commended our sector’s commitment to supporting tenants during what has been an incredibly tough year – and we recognise that those hardest hit will need further support through the winter. Any tenant who has not already engaged with its property owners, and is truly struggling, should now come to the table and be transparent about what they can afford. Equally, this announcement signals the end of the road for those who can pay rent but have so far refused to. The government has made clear they must now pay their debts.”

BRC chief executive Helen Dickinson said: “This news comes in the nick of time for many retailers. With footfall down and many stores completely shut in November, many are counting on December sales to claw back some of the lost turnover from this year. 

“This extension will give hard-pressed retailers breathing space to trade their way out of rent arrears that may have built up during lockdown. We hope that landlords and tenants will use this time to jointly agree new rent terms and payment plans to deal with any outstanding arrears.”