March 24, 2020
Commercial tenants who cannot pay their rent because of coronavirus will be protected from eviction, the government has announced. Many landlords and tenants are already having conversations and reaching voluntary arrangements about rental payments due shortly but the Government says that it recognises businesses struggling with their cashflow due to coronavirus remain worried about eviction.
These measures, included in the emergency Coronavirus Bill currently going through Parliament, will mean no business will be forced out of their premises if they miss a payment in the next three months.
This builds on the package of support announced for businesses who are affected by coronavirus.
As commercial tenants will still be liable for the rent after this period, the Government is also actively monitoring the impact on commercial landlords’ cash flow and continues to be in dialogue with them.
Mike Cherry, Federation of Small Businesses National Chairman, said: “Small businesses will wholeheartedly welcome the decision to ban evictions for commercial tenants for three months.
This will give piece of mind to millions of small businesses who are desperately struggling with their cash flow. We know sensible conversations between landlords and commercial tenants are taking place – but having this legislative backstop to prevent evictions during the worst of the crisis will provide much needed peace of mind for many small businesses.”
The Coronavirus Bill also includes new measures to ensure that Business Improvement Districts (BID) are equipped to continue their vital role in managing the impact of the crisis on local economies and helping town centres and high streets recover.
To ensure no area loses its Business Improvement District at this time, emergency legislation will allow a delay to ballots between now and 31 December 2020 until March 2021. This will ensure that they are conducted in a safe and effective way.
Image by Michael Gaida