A new law has come into force to help resolve remaining commercial rent arrears of approximately £7bn which were accrued during the Covid-19 pandemic.
The ‘Commercial Rent (Coronavirus) Act 2022’ is a legally binding arbitration process which will be available for eligible commercial landlords and tenants who have not already reached an agreement. The legislation will resolve disputes surrounding pandemic-related rent debt collection issues and help the market return to normal as quickly as possible. The law will encourage commercial tenants and landlords to work together to reach a mutual agreement where possible, using the new laws guidelines and code of practice to help them.
The government encourages commercial landlords and tenants to negotiate their own agreement so that an arrangement to resolve debt is mutually agreed, instead of resorting to the arbitration process. Tenants who can repay their rent debts in full, should do so, and when they cannot, landlords should try to share the burden.
Business Minister Paul Scully said: “This new law will give commercial tenants and landlords the ability to draw a line under the uncertainty caused by the pandemic so they can plan ahead and return to normality.”
The moratorium has provided firms with breathing space to negotiate how to address the cost of commercial rent arrears caused by the pandemic before the new law came into place.
At Sinclair Taylor, we have been collecting property debt for over 20 years, working with private and commercial landlords and housing associations when internal credit control processes have failed to recover due amounts. We offer a no collection, no fee service, with no upfront costs or contractual ties ins.
To speak to our team about the recovery of unpaid rent, please contact our offices today.
