LATEST: Government protects commercial tenants from aggressive debt recovery by landlords

admin    Uncategorized     agents

Ministers have moved to protect tenants from aggressive winding up orders and statutory demands, and also give them more breathing space during the pandemic.

New legislation is to be introduced to stop
heavy-handed commercial landlords putting pressure on high street tenants who
can’t pay their rent during the pandemic.

In a move which aims to prevent aggressive
debt recovery and protect high street jobs, landlords won’t be able to send
their tenants statutory demands and winding up petitions until at least 30^th
June – as part of the Corporate Insolvency and Governance Bill.

Tenants will also get more breathing space to
pay rent as landlords now can’t use Commercial Rent Arrears Recovery unless
they are owed 90 days of unpaid rent.

The Government says most landlords and
tenants are working well together to reach agreements on debt obligations, but that
some landlords have been putting tenants under undue pressure by using aggressive
debt recovery tactics.

But the government is also calling on tenants to pay rent where they can, and to recognise the strain felt by commercial landlords.

Kept afloat

Business Secretary Alok Sharma says it’s vital that
businesses are kept afloat so they can continue to provide jobs the economy
needs beyond the coronavirus pandemic.

He says: “Our unprecedented package of support can help
commercial landlords, including through the recent expansion of the Coronavirus
Business Interruption Loans Scheme.”

Adds Sharma: “I know that like all businesses they are
under pressure, but I would urge them to show forbearance to their tenants. I
am also taking steps to ensure the minority of landlords using aggressive
tactics to collect their rents can no longer do so while the COVID-19 emergency
continues.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Government protects commercial tenants from aggressive debt recovery by landlords | LandlordZONE.

View Full Article: LATEST: Government protects commercial tenants from aggressive debt recovery by landlords

If you enjoyed this article please consider sharing it!