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Insight

Government announces further extension to commercial property moratoriums

18/06/2021
Following its call for evidence in April this year, the Government announced on 16 June 2021 a further extension to the moratorium on forfeiture of commercial leases due to non-payment of rent and restrictions on the ability of landlords to recover commercial rent arrears from tenants.  These restrictions will now last until 25 March 2022.
 
It was also announced that new legislation will be introduced in the current parliament session to assist landlords and tenants in reaching an agreement on how to deal with outstanding rent arrears caused by the inability of tenants to trade during the pandemic.  In the event that an agreement cannot be made, the legislation will introduce a legally binding arbitration process to resolve matters.
 
In an aim to protect landlords, the Government has reiterated that tenants must pay rent where they are able to do so.
 
The same announcement has confirmed that the Government will be extending the prohibition on issuing statutory demands and winding up petitions to recover debt that has accrued as a result of the pandemic.  The prohibition which was to expire on 30 June 2021 has been extended for a further three months.
 

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