Commercial Rent Arrears Recovery – What’s Next?
The Government’s current moratorium on Commercial Rent Arrears Recovery and forfeiture (commercial eviction) is due to expire on 25th March unless it is extended before then.
Back in November, the Government introduced the Commercial Rent (Coronavirus) Bill, which, is expected to come into force next month and will establish a binding arbitration process for the parties in respect of rent arrears resulting from the enforced lockdowns during the pandemic.
One of the main provisions of the Bill is that landlords will be prevented from issuing new proceedings against commercial tenants in respect of rent covered by the new process until the six-month window for invoking the arbitration scheme has expired or any arbitration commenced has been concluded (proceedings issued prior to 10 November 2021 can proceed), which, it is hoped will give viable businesses a chance to recover.
We are yet to see what the new normal for enforcement of commercial rent arrears will look like following the lifting of the moratorium. We do not expect an immediate return to 7 days arrears for CRAR in March but perhaps it could be lowered from the current 554 days to 7 days over time, maybe over the course of the next year but only time will tell.
Otherwise, it could revert to the pre-pandemic rules overnight with the Covid debt period still ringfenced.
We will have to wait and see…
Be assured, as soon as we know, we will let you know…
For further press information, please contact:
Neil Jinks FCICM IRRV
Head of Client Development & Communications