Eviction moratorium extension 'stay of execution'

By Emily Hawkins contact

- Last updated on GMT

Rent crisis: more support is needed to fix the problem, UKHospitality boss Kate Nicholls has said in response to the extension of eviction protection
Rent crisis: more support is needed to fix the problem, UKHospitality boss Kate Nicholls has said in response to the extension of eviction protection

Related tags: Rent, ukhospitality

The Government has extended eviction protection for commercial tenants until the end of 2020.

The Ministry of Housing, Communities & Local Government said the move was intended to help the businesses struggling the most and businesses should pay their rent where they could.

The Government will also extend the restriction on landlords using Commercial Rents Arrears Recovery to enforce unpaid rent on commercial leases until the end of 2020.

Secretary of State for Housing Robert Jenrick said the extension would stop businesses going under and protect jobs.

Breathing room

He added: “This Government is committed to supporting businesses and our high streets at this difficult time, and this extension of support will help businesses recover from the impacts of the pandemic and plan for the future.” 

UKHospitality (UKH) chief executive Kate Nicholls said this would give pubs “some much-needed breathing room to come to agreements” but more was needed to solve the crisis. 

Full reprieve 

She said it was “critical” the Government also extended the moratorium on statutory demands and winding-up petitions and include County Court Judgements until the end of March 2021.

“It needs to be followed by further support which, crucially, must include working with landlords and tenants to find a mutually equitable solution,” Nicholls added.

“The debt is not going to go away and many businesses have no chance of paying it. This is a stay of execution, but we are still short of a full reprieve.”

An estimated £760m in unsettled rent from the last six months within the hospitality sector is still outstanding and that figure is expected to rise to an estimated £1.06bn ahead of September’s rent quarter payment date, according to UKH.

The Government published its code of practice​ on rent negotiations for tenants and landlords earlier this summer however this has been criticised as not going far enough to support tenants.

Related topics: Property law

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