Covid 19 - Rent moratoriums England and Wales

11 Mar
2021

The Welsh Assembly announced this week a rent moratorium extension until June 2021.

The Government in Westminster has quickly followed announcing an extension of the ban on commercial evictions for three months to 30 June.

Additionally, the Government has launched a call for evidence on commercial rents to help monitor the progress of negotiations between tenants and landlords. It will also set out potential steps the government could take after 30 June.

Options to be considered include a phased reduction of the level of protection offered to tenants to changes to existing legislation or separate support for those businesses impacted most by the pandemic and periods of closure.

UKHospitality chief executive Kate Nicholls said: "Extending the moratorium is a sensible and positive step by the government. It was really the only option for businesses that are on the brink of reopening but have piled up so much rent debt over the past year.”

On the matter of the call for evidence Kate Nicholls stated.

"The government's suggestion of a phased approach and targeted legislation could provide the flexibility combined with incentive our businesses need. We hope that this motivates landlords to come to the table with meaningful concessions. Refusal to do so would force the government to go down the legislative route, which would cause greater delays and trigger further business closures, even upon reopening, due to unsustainable levels of debt with no end in sight.

UKHospitality has been long calling for a government-brokered solution to the problem. We must find a mutually agreeable solution that works for all parties involved – tenants, landlords and investors. Tenants have borne the brunt of the pain of closure so far and it is clear that others need to take their share, too. It is integral to the future of the UK's hospitality sector and high streets across the country, which we hope will drive the economic recovery of the country. We hope the government investigates this avenue of approach."

Kate Nichols also called for an extension to the insolvency moratorium.

Law correct at the date of publication.
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