In a bid to prevent “aggressive rent collection” tactics during the coronavirus crisis, the UK Government has introduced further protection for tenants of commercial property by temporarily banning landlords from issuing Statutory Demand’s to evict tenants who have not paid their rent until 30th June 2020.

This builds on the unprecedented package of support announced for businesses which are affected by coronavirus.

What is a Statutory Demand?

It is a legal notice from a creditor sent by a creditor to request that the courts start proceedings to wind-up a company that owes it money.

While we know many landlords and tenants are already engaged in conversations and reaching voluntary arrangements regarding rental payments now due, this move by the UK Government reinforces the fact that many businesses are struggling with their cash flow due to the effects of the coronavirus pandemic.

What does this mean?

• No business will be forced out of their premises if they miss a payment in the next three months.
• These new measures will provide reassurance to businesses struggling with cash flow and ensure no commercial tenant is evicted if they cannot pay their rent because of coronavirus until 30 June 2020.
• Commercial tenants will still be liable for all rents due after this period. The Government is also actively monitoring the impact on commercial landlords’ cash flow and continues to be in dialogue with them through various industry bodies.
• These are important steps that will help strengthen town centres and commercial areas as they prepare for the future.

Need more help?

This situation and Government guidance is evolving daily and we will continue to update our clients as more details are unveiled. You can also visit our dedicated COVID-19 online resource hub for additional guidance.

In the meantime, should you have any specific concerns or requests please don’t hesitate to get in touch and we will do our utmost to provide you with the best advice during these unprecedented times.