Source · Select Committees · Business and Trade Committee
Recommendation 15
15
Paragraph: 50
With the moratorium on commercial rent obligations due to expire soon, the Government does not...
Conclusion
With the moratorium on commercial rent obligations due to expire soon, the Government does not appear to be any closer to identifying or facilitating a long- term solution to the difficulties faced by landlords and commercial tenants. While many landlords and tenants have been able to come to an accommodation, we are unconvinced that landlords and businesses will be able to identify a solution on their own in every case.
Paragraph Reference:
50
Government Response
Acknowledged
HM Government
Acknowledged
56. The Government should use the time afforded by current time-limited support measures wisely to identify long-term solutions. The Government should consider active measures to address the issue of growing commercial rent arrears, and proactively work with businesses, landlords, banks and other stakeholders to identify an appropriate long-term solution. (Paragraph 51) 57. The tenant protection measures introduced by the Coronavirus Act 2020 and the Corporate Insolvency & Governance Act 2020 are designed to give tenant businesses protection from the threat of eviction, and aggressive debt recovery practices at a time when many have been unable to trade normally. The Government has stressed throughout the pandemic the need for landlords and tenants to work together to resolve issues of accumulated rent arrears and ongoing lease terms. To aid these discussions, the Government published the voluntary Code of Practice in June 2020 to guide landlords and tenants in how to conduct such negotiations. This was recently supplemented with additional guidance on how tenant businesses should frame negotiations with their landlords. The Code of Practice and additional guidance can be seen here www.gov.uk/ government/publications/code-of-practice-for-the-commercial-property-sector. 58. These measures are temporary and are due to expire on 30 June 2021. The Government has always been clear that the best solution to the issues of accumulated rent