The government has revealed plans to broaden the Coronavirus Act and the Corporate Insolvency and Governance Bill, along with a code of practice for landlords and tenants. The intention being to allow tenant businesses some scope to work with landlords.
The key changes are:
- The extension of Coronavirus Act measures from 30th June until 30th September;
- A landlord can no loner forfeit (terminate) a tenant’s lease if they fail to pay their rent in the next 3 months;
- Â During this time, the government will inhibit landlords using Commercial Rent Arrears Recovery (CRAR) unless they are owed 189 days of unpaid rent;
- A possibility of a key amendment to the Corporate Insolvency and Governance Bill which will extend the temporary ban on the use of statutory demands and winding-up petitions, where a company cannot pay its bills due to coronavirus, until 30th September.
The key details from the new code of practice:
- It offers clarity to businesses when reviewing rental payments, encouraging best practice between landlords and tenants;
- It encourages tenants and landlords to be transparent and to act reasonably and responsibly, to produce a fair plan for all;
- It advises tenants t to pay their rent in full where possible and that others should pay what they can;
- It also acknowledges that landlords should provide support to businesses if they can;
- The code is voluntary for businesses and is relevant to all commercial leases held by businesses in any sector which have been impacted by the coronavirus pandemic.