Reed Smith Client Alerts

The government has announced that commercial tenants who cannot pay their rent because of coronavirus will be protected from eviction for the next three months, as landlords will be unable to forfeit leases. This follows protection already in place for residential tenants and forms part of the emergency Coronavirus Bill, which is yet to receive Royal Assent.
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Although many of our clients are already having conversations about payment of the March quarter’s rent, the government wants to ensure that businesses struggling with cashflow due to coronavirus do not face the prospect of eviction between now and 20 June, when the measure comes to an end. As things stand, forfeiture will be available after this period and the government says it is also actively monitoring and discussing the impact this will have on commercial landlords’ cashflow.

Housing, Communities and Local Government Secretary Robert Jenrick said:

“We are protecting both people and their businesses by providing the urgent support they need.