Reed Smith News Flashes

The long awaited Commercial Rent (Coronavirus) Bill has finally received Royal Assent and becomes law with immediate effect.

This means landlords may now be able to recover unprotected rent (that is rent that isn’t owed because of the Covid restrictions and closures that took place between March 2020 and July 2021) and can proceed with forfeiture and Commercial Rent Arrears Recovery through enforcement agents. From 31 March, they will also be able to petition to wind up a company in respect of unprotected rent debt.

For rent debt that is protected, and where an agreement for repayment hasn’t already been reached, there is now a six month period for landlords or tenants to refer the matter to arbitration. Only after the six months, if the matter is not arbitrated, or at the end of an arbitration, can a landlord take further steps to recover this rent debt. The Act gives guidance around the arbitration bodies that can be approached and the timetable for an arbitration.

Please do get in touch if you need further advice and support in connection with anything relating to the Act or the recovery of commercial rent.

Newsflash 2022-095