Businesses who cannot pay their rent because of the coronavirus outbreak will be safe from eviction under new Government plans.
The measures in the Coronavirus Bill going through Parliament mean that no business will be forced out of their premises if they miss a payment in the next three months.
But organisations representing landlords have stressed that they are also coming under pressure in the unprecedented business lock down, and have called for Government support to make the measures possible.
Communities Secretary Robert Jenrick said: “We are protecting both people and their businesses by providing the urgent support they need.
“We know many commercial landlords are already setting a great example by working closely with tenants and offering rent deferrals or holidays.
“However, these new measures will provide reassurance to businesses struggling with cashflows and ensure no commercial tenant is evicted if they cannot pay their rent because of coronavirus over the next three months.”
The commercial rent protections follow other measures introduced by the Government to support businesses suffering from the coronavirus outbreak, including paying 80% of wages of staff unable to work and breaks from business rates and other Government charges.
But the British Property Federation said that property owners would need to meet obligations to banks and other lenders and would also need support.
Most Read
Chief executive Melanie Leech said: “The commercial property industry is committed to supporting its customers who, through no fault of their own but due to coronavirus, are concerned about how they going to pay their rent.
“The Government has recognised that responsible property owners are already proactively offering flexibility around rent payments but the announcement of a three-month moratorium on the ability to exercise right of forfeiture in relation to non-payment of rent will offer additional reassurance to hard-pressed businesses.
“Property owners are similarly facing the impacts of coronavirus on their own businesses and will need further support – for example to meet their obligations to their lenders and to the savers and pensioners who rely on the income they generate - if they are going to help as many businesses as possible come through the next few weeks.”
Many businesses would be due to pay their quarterly rent on March 25, but the commercial property sector has been reeling for more than a year from the decline of high streets and the retail sector in general.
Mike Cherry, chairman of the Federation of Small Businesses National Chairman, said: “Small businesses will wholeheartedly welcome the decision to ban evictions for commercial tenants for three months.
“This will give piece of mind to millions of small businesses who are desperately struggling with their cash flow.
“We know sensible conversations between landlords and commercial tenants are taking place – but having this legislative backstop to prevent evictions during the worst of the crisis will provide much needed peace of mind for many small businesses.”