On 25 June 2020 the Government issued its latest Coronavirus update, which offers continuing support to tenants. Some key points to note for the landlord and tenant sector are as follows:
- The protections for business tenancies from forfeiture for non-payment of rent have been extended. The "relevant period" (pursuant to s. 82 of the Coronavirus Act 2020) commenced on 26 March 2020, and was originally defined as ending on 30 June 2020, or such later date as the Secretary of State shall specify. The "relevant period" has now been officially extended to 30 September 2020.
- The Taking Control of Goods and Certificate of Enforcement Agents (Amendment) (No. 2) (Coronavirus) Regulations 2020 came into effect on 24 June 2020. These regulations have two main effects:
1. the regulations have increased the minimum net unpaid rent that must be outstanding before commercial rent arrears recovery (CRAR) may take place, from 90 days' rent to an amount equivalent to 189 days' rent, while protections from forfeiture are in place; and
2. 23 August 2020 has been prescribed as the expiry date for the following measures:
a) the prevention of enforcement agents taking control of goods at residential premises and on highways;
b) the automatic extension of the period for taking control of goods; and
c) the automatic extension of certificates of enforcement agents.
Unless we see this date pushed back even further (which seems unlikely now that England is opening back up), we can expect bailiffs to be very busy from 23 August.
For a more in depth analysis of the above, please refer to the following blog post by my litigation colleague, Ed John:
https://disputeresolution.howardkennedy.com/post/102gac8/moratorium-on-forfeiture-of-commercial-leases-extended-to-30-september-2020
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