Ministry of Housing, Communities & Local Government
Extra protection for businesses with ban on evictions for commercial tenants who miss rent payments
- Also published by:
- Department for Business, Energy & Industrial Strategy, HM Treasury
Commercial tenants who cannot pay their rent because of coronavirus will be protected from eviction.
- Commercial tenants unable to pay rent because of coronavirus will be protected from eviction
- Measures support ongoing conversations between landlords and tenants about voluntary arrangements
- Latest measure builds on the unprecedented package of support for businesses already announced
Commercial tenants who cannot pay their rent because of coronavirus will be protected from eviction, the government has announced.
Many landlords and tenants are already having conversations and reaching voluntary arrangements about rental payments due shortly but the government recognises businesses struggling with their cashflow due to coronavirus remain worried about eviction.
These measures, included in the emergency Coronavirus Bill currently going through Parliament, will mean no business will be forced out of their premises if they miss a payment in the next 3 months.
This builds on the unprecedented package of support announced for businesses who are affected by coronavirus.
As commercial tenants will still be liable for the rent after this period, the government is also actively monitoring the impact on commercial landlords’ cash flow and continues to be in dialogue with them.
Communities Secretary, Rt Hon Robert Jenrick MP, yesterday said:
We are protecting both people and their businesses by providing the urgent support they need.
We know many commercial landlords are already setting a great example by working closely with tenants and offering rent deferrals or holidays.
However, these new measures will provide reassurance to businesses struggling with cashflows and ensure no commercial tenant is evicted if they cannot pay their rent because of coronavirus over the next 3 months.
The Chancellor of the Exchequer, Rishi Sunak MP, yesterday said:
We are taking unprecedented action and doing so at unprecedented speed, because we know that businesses and their employees need help now.
That is why we are taking steps to change the law so that no company can be forced out of its premises due to loss of income. Alongside our support for workers and £330 billion of business loans and guarantees, this will help make a real difference to firms across the country trying to protect jobs.
Business Secretary, Alok Sharma MP yesterday said:
This measure will provide companies with an essential safeguard in these highly unusual times as they deal with the impact of coronavirus.
This is part of the unprecedented package of support we have put in place to protect jobs and livelihoods right across the country.
Mike Cherry, Federation of Small Businesses National Chairman, yesterday said:
Small businesses will wholeheartedly welcome the decision to ban evictions for commercial tenants for 3 months.
This will give piece of mind to millions of small businesses who are desperately struggling with their cash flow.
We know sensible conversations between landlords and commercial tenants are taking place – but having this legislative backstop to prevent evictions during the worst of the crisis will provide much needed peace of mind for many small businesses.
The Coronavirus Bill also includes new measures to ensure that Business Improvement Districts (BID) are equipped to continue their vital role in managing the impact of the crisis on local economies and helping town centres and high streets recover.
To ensure no area loses its Business Improvement District at this critical time, emergency legislation will allow a delay to ballots between now and 31 December 2020 until March 2021. This will ensure that they are conducted in a safe and effective way.
Simon Quin, High Streets Task Force Executive Director, yesterday said:
These are important steps that will strengthen town centres and commercial areas as they prepare for the future.
They will encourage retention of occupancy and ensure Business Improvement Districts can focus on support for their local areas through the emergency and into recovery. This will make places more resilient.
The amendment to the Coronavirus Bill on commercial leases will apply to England, Wales and Northern Ireland. It applied to all commercial tenants.
We will, of course, be working with the Devolved Administrations, including Scotland, across our coronavirus response.
The change will come into force when the Coronavirus Bill receives Royal Assent. It will last until 30 June, with an option for the government to extend if needed.
The new business information campaign has gone live with updated information available.
Office address and general enquiries
2 Marsham Street
Contact form https://forms.communit...
General enquiries: please use this number if you are a member of the public 030 3444 0000
Please use this number if you are a journalist wishing to speak to Press Office 0303 444 1209
Social media – MHCLG
Latest News from
Ministry of Housing, Communities & Local Government
New Permanent Secretary at the Ministry of Housing, Communities and Local Government31/03/2020 12:10:00
Jeremy Pocklington appointed the new Permanent Secretary.
First food parcels delivered to clinically vulnerable people30/03/2020 17:14:00
The first free food boxes containing essential supplies have been delivered in England to those at highest risk from coronavirus.
Communities Secretary Robert Jenrick on COVID19 response30/03/2020 13:38:00
The Communities Secretary on the government’s response to COVID19 and shielding the most vulnerable (29 March 2020).
New Grenfell adviser appointed as final Grenfell Taskforce report published27/03/2020 15:10:00
Nick Hurd, has been appointed as an Independent Adviser to the Prime Minister on Grenfell.
Government confirms £500 million hardship fund will provide council tax relief for vulnerable households25/03/2020 08:10:00
£500 million Hardship Fund will provide council tax relief to vulnerable people and households to help those affected most by coronavirus.
Government sets out plans to enforce closure of businesses and other venues23/03/2020 14:20:00
Local government will be responsible for enforcing regulations requiring those businesses asked to close.
Major new measures to protect people at highest risk from Coronavirus22/03/2020 09:17:00
A raft of new measures, including a helpline for the most in need of support, have been set out for those considered to be extremely vulnerable.
Government announces further measures on social distancing21/03/2020 11:17:00
Entertainment and hospitality premises to close temporarily and people urged to only travel if absolutely essential.