- 16 September 2020
- Commercial Real Estate
The Government is reportedly rumoured to be preparing to extend the ban on evictions for those in the hospitality and retail sectors until the end of the year, with an official announcement to follow as early as next week.
The current ban or ‘moratorium’ was introduced earlier this year to help those in the hospitality and retail sectors who were forced to close as a result of the pandemic and was due to expire on 30 September 2020. As the Government faces increased pressure to provide further support to struggling businesses, and as the September quarter day draws ever closer, an extension until the end of the year seems likely.
However, this news has been met with mixed views.
The trade association UKHospitality estimates that hospitality companies owe £760 million of unpaid rent, and its head Kate Nicholls believes that this extension will provide vital support: “It is very welcome news that the continuation of vital support measures is being actively considered and we urge the Treasury to confirm this as soon as possible to protect the greatest number of jobs.”
But some Landlords are reportedly unhappy about the extension with many claiming that tenants have been refusing to pay rents even when they have available funds to do so, and that big profitable companies had been taking advantage of the pandemic. This view is echoed by Melaine Leach, chief executive of the British Property Federation who has reportedly said: “The moratorium, however, must come to an end as well-financed businesses have been exploiting the government intervention to avoid paying rent, when they are indeed able to pay, and this puts at risk our sector’s ability to support vulnerable tenants. For many, extending the moratorium will simply mean growing the volume of rent arrears, and this debt is already at unsustainable levels.”
The current ban or ‘moratorium’ was introduced earlier this year to help those in the hospitality and retail sectors who were forced to close as a result of the pandemic and was due to expire on 30 September 2020.
The Government has a balancing act to perform in order to protect the needs of both commercial tenants and commercial landlords alike. The UK economy is in a fragile state and the extension will be seen by many as a means to provide further support to allow the economy to strengthen and grow. However further extensions to the moratorium only seek to contribute to unpaid rents and ultimately increasing debts. Allowing extensions for an indefinite amount of time will only mask the problem and could cause longer term harm to the economy.
For further information please contact our Real Estate team.
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.
About this article
SubjectMixed response to the rumoured ban on evictions until the end of the year
ExpertiseCommercial Real Estate
Published16 September 2020
Read, listen and watch our latest insights
- 22 February 2024
Time to take the heat off menopausal women
On 22 February 2024, the EHRC released guidance and resources for employers designed to help employers understand their legal obligations in relation to supporting workers experiencing menopausal symptoms.
- 22 February 2024
Talking Employment Law: What to do if you’re at risk of redundancy
In this podcast, Harry Berryman and Rebecca Dowle, members of the employment team, will talk through the steps that need to be taken for a redundancy to be fair and the range of criteria that can be used when determining which employees will be made redundant.
- 21 February 2024
FAQs Partner Visa UK
Discover the UK Spouse Visa: eligibility, finances, relationship criteria, and the latest updates in 2024 for a successful application.
- 19 February 2024
- Privacy and Data Protection
The role of Data Protection Officers in ensuring compliance
How many of us receive marketing calls for products and services we did not sign up for?
- 12 February 2024
The World of Work in 2024- What Can HR Expect?
In many senses, 2024 is unlikely to be a year with radical ruptures from those that have gone before it. The significance of 2024 though, is that it is likely to build upon those megatrends impacting the world of work, which have been emerging for some time now and are only likely to strengthen as we move on in time.