MHCLG announces extension to tenant protections amid coronavirus (COVID-19)

MHCLG announces extension to tenant protections amid coronavirus (COVID-19)

The Ministry of Housing, Communities & Local Government (MHCLG) has announced an extension to the protections available to commercial tenants who are struggling with rent arrears, because they are still closed due to coronavirus (COVID-19), until 25 March 2022. This means that businesses that have not been able to open and therefore cannot afford to pay their rent are protected against eviction until then. This gives businesses that have not yet been able to open a longer time period in which to reach an agreement with their landlords without facing the threat of eviction.

The Communities Secretary Robert Jenrick has also said that he plans to introduce legislation which would ringfence outstanding rent arrears and split the burden of it between landlords and tenants. Landlords will be expected to make allowances for this and to work together with their tenants to reach an agreement over the unpaid rent.

Jenrick said about the announcement: ‘This special scheme reflects the unprecedented nature of the pandemic and responds to the unique challenges faced by some businesses. It strikes the right balance between protecting landlords while also helping businesses most in need, so they are able to reopen when it is safe to do so’.

The MHCLG also states that the Ministry of Justice have confirmed that the restriction on the use of the Commercial Rent Arrears Recovery (CRAR) process by landlords will also be extended, to provide continuing protection to tenants with rent arrears whilst the forfeiture restrictions remain in place.

Source: Eviction protection extended for businesses most in need

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