Authors

Edward Cooper

Senior counsel

Read More

Saleem Fazal

Partner

Read More

Stephen Burke

Senior associate

Read More

Emma Dooley

Associate

Read More
Authors

Edward Cooper

Senior counsel

Read More

Saleem Fazal

Partner

Read More

Stephen Burke

Senior associate

Read More

Emma Dooley

Associate

Read More

11 December 2020

Forfeiture restrictions extended for the "final" time?

The Government has announced that the moratorium on forfeiture of commercial leases for non-payment of rent will be extended for a third time, from 31 December 2020 to 31 March 2021.

The restrictions on serving statutory demands and winding up petitions will also be extended to the end of March, together with the restrictions on using Commercial Rent Arrears Recovery (CRAR).

Given that England only recently came out of its second national lockdown, this news comes as little surprise. However, unlike previous extension announcements, this has been described as a "final extension". While another spike in infections could possibly lead to a u turn, this does suggest that Government is now planning to bring an end to this phase of protective measures. The key question is therefore what will happen after the moratorium ends. While this is still unknown, some clues have been given.

It has been confirmed that the Government will conduct a review of "outdated commercial landlord and tenant legislation". The legislation being targeted for potential review will include the Landlord and Tenant Act 1954, which grants security of tenure to business tenants. Different models of rent payment will also be considered, in conjunction with the impact of the pandemic on the market.

In view of how the Government has managed the pandemic thus far, it seems likely that any changes to existing legislation will be to assist tenants, but precious little detail has been provided. In other words, watch this space!

Call To Action Arrow Image

Latest insights in your inbox

Subscribe to newsletters on topics relevant to you.

Subscribe
Subscribe

Related Insights

Buildings from above
Real estate disputes

Service charges: the landlord always knows what's fair

13 April 2021
Briefing

by Saleem Fazal

Click here to find out more
Low angle view of futuristic skyscrapers
Real estate disputes

Exclusive Possession: Procter's paradox resolved

13 April 2021
Briefing

by Edward Cooper

Click here to find out more
Businessman holding diagram
Real estate disputes

Electronic Communications Code: No Code renewal for 1954 Act tenants (yet)

13 April 2021
Briefing

by Emma Dooley

Click here to find out more