Measures protecting commercial tenants extended to 31 December 2020

The government has announced that the measures currently in place which prevent landlords in England from forfeiting a commercial lease for non payment of rent are to be extended until 31 December 2020. This follows the announcement that business tenants in Wales would see the moratorium on forfeiture extended to the end of the year.

Measures preventing landlords from using Commercial Rent Arrears Recovery have also been extended. Landlords will be unable to take action unless they are owed:

• 276 days' rent where the notice of enforcement is given on or before 24 December 2020; and
• 366 days' rent where the notice of enforcement is given on or after 25 December 2020.

The press release highlights the government's view that parties should 'continue to work together to agree rent payment options' and highlights the 'Code of Practice for commercial property relationships during the COVID-19 pandemic' which was launched in June this year to support discussions.

Update 30.09.2020: The temporary ban on the use of statutory demands as the basis of a winding up petition has been extended until 31 December 2020. The measures which restrict winding up petitions being presented and winding up orders being made unless it can be shown that COVID-19 has not had a financial effect on the company (or, even if it has, that the relevant ground for winding up would have been satisfied anyway) have also been extended until 31 December 2020.