Reed Smith News Flashes

As part of the measures, the Ministry of Justice will also lay a Statutory Instrument to extend the restriction on the use of the Commercial Rent Arrears Recovery (CRAR) process by landlords. This measure will increase the total number of days’ outstanding rent required for CRAR to be used to 457 days’ between 25 March and 23 June, and 554 days’ between the 24 and 30 June.

Authors: Katherine A. Campbell

Katherine Campbell further commented on the extension:

The decision to extend the commercial eviction ban and bailiff enforcement activity will be welcomed by struggling retailers but, once again, sees landlords reduced to the open piggybanks of the sector. The unpaid rent bill is estimated at £4.5 billion, so as things stand, it seems the Government is just delaying the inevitable reckoning once the measures are lifted. It feels a little bit like relying on wallpaper to cover up dry rot.

Landlords have seen their armouries stripped bare of all the tools that they would normally rely on to survive, and today’s decision will stretch them even closer to breaking point. Currently, the only legal teeth left to UK landlords hinges on issuing county court claims for rent.

We rightfully pour effort into keeping the UK’s retailers afloat, but why does it increasingly seem like the landlords, who also contribute taxes, employ citizens and feed into our economy, have been entirely forgotten? Today's measures kick the can down the street, but eventually we will surely run out of road.

The full announcement is available at gov.uk.

News Flash 2021-074