Government measures in key jurisdictions 5th edition - Flipbook - Page 159
UnitedKingdom
Property
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Under emergency legislation: landlords of business tenancies are prohibited from reentering premises (forfeiture) for non-payment of any sums due under the lease, from 26
March 2020 to 31 March 2021 inclusive. This period can be extended by further
legislation, and reports suggest the government is planning to extend this to 30 June
2021. Landlords will retain their right to exercise re-entry for these sums at a later date,
unless they expressly waive it in writing. Existing court orders for possession of premises
may be postponed. Notice periods for terminating most residential tenancies were
extended to three months, for the period 26 March 2020 to 31 March 2021.
•
The suspension of possession claims which affected residential and commercial
property was lifted on 20 September 2020, but claims can only be made subject to
various extra requirements. These may include serving a ‘re-activation’ notice and
explaining the tenant’s circumstances in relation to Covid, depending on the particular
case.
•
The enforcement of possession claims in the residential sector is prohibited until 31
March 2021, subject to exemptions in serious cases such as illegal occupation, antisocial behaviour and rent arrears of 6 months or more. Taking control of goods in a
dwelling for recovery of rent arrears is prohibited for the same period.
•
Commercial Rent Arrears Recovery, the process used to take goods to recover
commercial rent arrears, can now only be exercised if 366 days’ rent is due (compared
to 7 days in normal times). This applies until 31 March 2021, although there is a
suggestion it will be extended until 30 June 2021.
•
Many business tenants are now able to open their doors to the public, although
some remain closed. Aside from the legislation above and absent any other intervention,
leases will continue and the obligations on tenants will carry on as before.
•
The most practical route for the majority of tenants will be some form of temporary
adjustment to the rent payable under the lease, from a switch from quarterly to monthly
rent payments, to a rental holiday or deferment or even a full rent-free period.
•
Landlords in the UK are being encouraged to approach negotiations with a degree of
flexibility and it may become increasingly difficult for landlords to resist some nod to the
gravity of the situation faced by the whole business community.
•
A number of practical tips for both landlords and tenants is here.
Have any changes
been made to
the laws around
property, rent and
enforcement?
Government measures in key jurisdictions
159
