Commercial Rent (Coronavirus) Act 2022 – Act now to help yourself
The Commercial Rent (Coronavirus) Act 2022 became law on the 24 March 2022. The law is designed to help resolve disputes about certain commercial rent debts that accrued during the pandemic. It deals with rent arrears whilst tenant businesses were mandated to close in full or in part from March 2020 until restrictions enabled the relevant businesses to open again. Do you have arrears built up during that period?
Landlords and tenants are encouraged to reach an agreement about how to deal with these arrears but if they fail to do so, the law provides that either the landlord or the tenant can refer the matter to a new statutory arbitration scheme.
The arbitrator can decide whether or not there are any rent arrears that are protected by the Act, whether the tenant should be given relief from payment of the relevant rent arrears and if so, what relief should be given.
There are restrictions in the Act about what is classed as rent, and tenancies to which the Act applies. Most importantly, there is a period of only 6 months from 24 March 2022 during which the matter may be referred to arbitration, although this period could be extended by the Secretary of State. This timetable is crucial. It should also be borne in mind that the general moratorium on commercial evictions and restrictions on commercial rent arrears recovery came to an end when the Act was passed on 24 March 2022. Therefore, it is important to act quickly.
How can we help?
If you need any advice on whether or not the Act applies to your tenancy and whether or not payments under it are protected, please contact Claire Barritt on 01473 826312 or email at [email protected].