COVID-19 – IMPACT FOR COMMERCIAL PROPERTY

Alok Sharma has announced that the government is setting out measures in order to protect High Street shops and companies who are suffering, due to coronavirus, and are under strain due to their inability to meet their monthly or quarterly rent commitments.

The Corporate Insolvency and Governance Bill, announced in April, will include these measures.

• While many landlords and tenants have managed to reach agreements on debt obligations, this has not been possible in all cases and landlords need to be aware of what action they can and cannot take in these circumstances.
• The government is temporarily banning the use of statutory demands and winding up orders, where Corona virus has prevented companies from paying their bills, in order to protect them from further financial strain.
• Secondary legislation, set out by the government, will also prevent landlords using Commercial Rent Arrears Recovery (CRAR) unless there are 90 days of unpaid rent, providing more breathing space for tenants to pay rent.
• Despite these measures, the government is still urging all payments to be paid by tenants wherever possible, in full or in part, as an acknowledgment of the difficulty facing commercial landlords.

If there is any information you wish to discuss further, please contact Katie Froude.

This article is prepared with the intention of providing general information on the changes in law. Philip Ross Solicitors accept no responsibility for errors it may contain and the coverage of the topic is not comprehensive. You are advised to speak directly to the writer or another partner within this firm within any specific enquiries on the topic addressed.

Katie is a Partner in the litigation department, specialising in property litigation, which most commonly involves landlord and tenant disputes. She acts for commercial and residential landlords and developers with large property portfolios, based predominantly in Central London.