The government has launched a new code of practice to provide clarity for businesses when discussing rental payments and to encourage best practice so that all parties are supported.
The code is voluntary for businesses but is relevant to all commercial leases held by businesses in any sector which have been impacted by the coronavirus pandemic.
It encourages tenants to continue to pay their rent in full if they are in a position to do so and advises that others should pay what they can, whilst acknowledging that landlords should provide support to businesses if they too are able to do so.
The Code of Practice is available here.
The government has also confirmed that it is –
- extending the time period for the suspension of evictions from June 30 to September 30, meaning no business will be forced out of their premises if they a miss a payment in the next three months.
- preparing legislation to prevent landlords using Commercial Rent Arrears Recovery before September 30, unless they are owed 189 days of unpaid rent.
- extending the temporary ban on the use of statutory demands and winding-up petitions where a company cannot pay its bills due to coronavirus until 30 September.
UKFT is in constant dialogue with the government and is outlining the latest support available for businesses on our website. We will update the details as and when the situation changes.