UK government extends the ban on commercial eviction until the end of September

Recently the UK government has announced that it will extend the ban on commercial evictions until the end of September. This measure will serve as a code of conduct and mediation between the landlords and their tenants.

This ban was first implemented around three months ago when the government was forced to launch various emergency measures to lessen the impact that the Coronavirus pandemic would have on people’s lives.

Next Wednesday, the government will issue an official statement setting forth the standards that must be followed through this extension.

“We want to protect those who still can’t pay the rent.”

Robert Jenrick, Community Secretary, said: “As our main streets come alive and our urban centers open to business, it is crucial that both homeowners and renters have clarity and peace of mind as they seek to keep their finances stable and recover.”

“That is why we are extending measures to protect those who cannot pay the rent from eviction so that companies have the security they need to plan their future.”

“And in recognition of the strain the virus has had on our main streets, our new code, backed by industry-wide leaders, will help unlock conversations about future rents and payments while ensuring best practices are displayed.”

“Tenants and landlords must reach an agreement.”

Katie Jacobson, a partner at DLA Piper, said: “For several tenants, the most practical solution for rental payments will be some form of adjustment, temporary or otherwise, to the rent payable under relief.”

“Not many landlords wish to take back retail space at this time due to market uncertainty, so there will be an appetite from both parties to find the middle ground and strike a deal.”

“We are seeing deals in all shapes and sizes from changes to the phasing for payment and reduced monthly rental payments to full rental abatements and renegotiation of the lease length. What these arrangements all have in common is to share out the risk of payment in the short term.”

“Landlords and tenants will need to make sure any resolutions are fully documented and displayed in very clear terms, signed by both parties to avoid any future disputes.”

Later this month, the UK government will re-evaluate whether the other economic measures launched at the start of the pandemic will also receive an extension.

HICH LTD continues to work to offer the best property survey service, before, during, and after the pandemic; we have redoubled our efforts to maintain the quality standard that has made us a leading property survey company.