High street shops and other companies under strain will be protected from aggressive rent collection and asked to pay what they can during the coronavirus pandemic.
The majority of landlords and tenants are working well together to reach agreements on debt obligations, but it has been brought to the Government's attention that some landlords have been putting tenants under undue pressure by using aggressive debt recovery tactics.
To stop these unfair practices, the Government will temporarily ban the use of statutory demands and winding up orders where a company cannot pay their bills due to coronavirus.
Additionally, the Government is also laying secondary legislation to provide tenants with more time to pay rent by preventing landlords using Commercial Rent Arrears Recovery (CRAR) unless they are owed 90 days of unpaid rent.
This will further safeguard the high street and millions of jobs by helping to protect them from permanent closure during this time. However, while landlords are urged to give their tenants the breathing space needed, the government calls on tenants to pay rent where they can afford it or what they can in recognition of the strains felt by commercial landlords too.
Lucy Allan MP said:
"I welcome the Government's measures to protect commercial tenants.
In the small number of cases where landlords have been aggressively pursuing rent payments this will assist tenants by allowing them more time to organise their finances and ensure sustainable rent arrangements going forward.
As many Telford businesses are facing unprecedented financial pressures from the effects of the coronavirus, this legislation will provide a vital lifeline which will protect our high streets and their tenants."
