Further Update for Commercial Landlords and Tenants

Under the Coronavirus Act, commercial landlords are prevented from taking steps to forfeit leases where the tenant has not paid their rent until after 30 June 2020.

However, this did not prevent a landlord from taking other steps including insolvency and commercial rent arrears recovery.

The government has now announced further emergency measures to protect commercial tenants from action taken by their landlords for non-payment of rent in addition to those introduced in the Coronavirus Act.

The Corporate Insolvency and Governance Bill 2020 proposes to include restrictions on the issue of statutory demands, the presentation of winding-up petitions and the making of winding up orders if a tenant company is unable to pay their debts due to coronavirus.

The government has also announced that it will introduce legislation to prevent commercial landlords from exercising their right of commercial rent arrears recovery unless rent arrears of at least 90 days are due.

Draft legislation is awaited to introduce these changes therefore the exact mechanism of how these changes will work in practice is unknown.


Should you have any questions please email Fiona Squire or complete the contact form and Fiona will call you back.



The content of this article is correct as at the date of posting and is for information purposes only. Whilst we try and ensure it is accurate we do not warrant or guarantee that this is the case, nor do we accept any responsibility in the event that it is relied on. The information is not intended to be a substitute for legal advice which you are recommended to obtain.

Back to News