Organisations given protection from landlords aggressive debt recovery tactics

In order to help protect them from aggressive rent collections or unfair price hikes, High Street shops and other bricks and mortar organisations under strain during the current lock-down will be protected and rather asked to simply pay what they can as outlined in a recent government statement

“The majority of landlords and tenants are working well together to reach agreements on debt obligations, but some landlords have been putting tenants under undue pressure by using aggressive debt recovery tactics.”

About unfair practices they added:

“To stop these unfair practices, the government will temporarily ban the use of statutory demands (made between 1 March 2020 and 30 June 2020) and winding up petitions presented from Monday 27 April, through to 30 June, where a company cannot pay its bills due to coronavirus.

These measures are aimed at helping to make sure these companies don’t end up in even more financial trouble. The measures will be included in the Corporate Insolvency and Governance Bill, which the Business Secretary Alok Sharma set out earlier this month.

Secondary legislation, also laid out by the government, aims to provide tenants with more time to pay rent by preventing landlords using the Commercial Rent Arrears Recovery (CRAR) statutory procedure unless they are owed 90 days or more of unpaid rent.

This is also aimed at further safeguarding the high street and the millions of jobs that may be in danger of being lost. At the same time, the government has also called on tenants to pay rent if able to (or as much as they can afford to) in recognition of the strains also felt by commercial landlords.

Jason Scholey

Jason Scholey