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Ban on Commercial Evictions Extended Until March 25th, 2022

The Government has released a new update concerning the existing protections for commercial tenants.

The restrictions on commercial evictions, which were put in place to help struggling businesses during the COVID-19 pandemic, shall now be extended from June 30th, 2021 to March 25th, 2022.

Here is a summary of the government’s latest plans for a number of other protections:

  1. Restrictions on statutory demands and winding up petitions are to remain for a “further three months”

  2. Legislation ring-fencing rent arrears from “specific periods of closures due to the pandemic” is to be introduced – with a binding arbitration process for instances in which an agreement cannot be reached on how to deal with the arrears

  3. A review of commercial landlord and tenant law (including Part II of the Landlord and Tenant Act 1954) is to be conducted

  4. Restrictions on CRAR are to be extended so that the minimum amount of outstanding rent will remain at 544 days

Regarding the extension of restrictions, Business Secretary Kwasi Kwarteng said the following:

“Extending the ban on commercial evictions is a necessary measure to help businesses through the final stages of the pandemic, and comes on top of our generous £350 billion package of support that has been available throughout the pandemic.”

Communities Secretary Robert Jenrick said:

“We have provided unprecedented support to businesses to help them through the pandemic. However, as we continue to lift restrictions and start to return to business as usual, tenants and landlords should be preparing to pay rent or come to an agreement if they have not done so already.”

To view the full government update, please click here.

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