Landlords blocked evictions from small businesses for another three months

Originally written by Timothy Adler about small business

The government has banned commercial landlords from evicting small businesses from stores and other premises for an additional three months through June 30, 2021.

This moratorium was introduced in March last year and has already been extended three times.

It is part of a package from the Chancellor to extend business support until June. On February 22nd, Boris Johnson announced its Covid-19 roadmap. The stores are scheduled to open in mid-April and hospitality to be operational by the end of June.

The government wants small business owners and commercial landlords to enter into agreements to repay or write off rental debt by June 30th. The government published a code of conduct last year setting out best practices for negotiation.

However, the government warned that it would be ready to take further action if the negotiations collapse altogether and there is a significant risk to jobs.

However, the Financial Times reported a warning from UKHospitality that 40 percent of hotel operators had not yet reached an agreement to reduce or defer their rent.

> See also: How to request a freeze on the commercial rent from your landlord

The British Property Federation estimates the total unpaid rent for commercial property in the UK at £ 4.5 billion from late March to December.

Some of that comes from bigger companies like Boots, H&M, and JD Sports.

David Wadsworth, Partner at JMW Solicitors, said, “Smaller landlords would not seek to evict the larger chains for non-payment of rent unless there is a better tenant to replace them, so potential loopholes and liabilities would be paid from business installments .

“Large retailers, especially supermarkets, have also been criticized for claiming some relief on business rates, even if they have made higher profits and made the most of all sectors since the initial lockdown in March 2020. A better and fairer approach would certainly be to establish new rules based on a completely different method, such as B. the methods of the Business Interruption Loan Scheme, which is based on sales.

“It is a laudable goal to prevent smaller but viable businesses from being displaced at this point. In order for larger companies to be able to “play” the system, the government should already have put a stamp on it. “

further reading

Commercial landlords are not allowed to use aggressive rent move-in tactics

Landlords blocked evictions from small businesses for another three months

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