Government extends moratorium on commercial evictions

The government has again extended its moratorium preventing the eviction of commercial tenants for non-payment of rent until the end of 2020. Whilst the announcement will be welcomed by tenants supporting them into the important Christmas trading period, landlords will remain frustrated.

Rebecca Mitchell, an Associate in the Real Estate team at law firm Collyer Bristow comments.

“The moratorium, due to be lifted on 30 September 2020, will be extended until 31 December 2020. In addition, the government will also extend the restriction on landlords using Commercial Rents Arrears Recovery to enforce unpaid rent on commercial leases.

“The extension will, no doubt, be a source of relief to struggling tenants helping businesses recover and continue trading into the Christmas period.

“The news is likely to frustrate some commercial landlords, many of which may not have received rent for several months. However, they can take comfort in the knowledge that the restrictions on presenting a winding-up petition against tenants is due to be lifted on 30 September 2020.

“That said, we predict that it too will be extended until the end of the year. In the meantime, landlords and tenants will need to continue to work proactively together to find ways to restructure and, hopefully, meet both parties’ financial needs.”