New laws and code to resolve remaining COVID-19 commercial rent debts

New laws and a Code of Practice are being introduced to resolve the remaining commercial rent debts accrued because of the pandemic. 

The Code sets out that, in the first instance, tenants unable to pay in full should negotiate with their landlord in the expectation that the landlord waives some or all rent arrears where they are able to do so.

From 25 March 2022, new laws introduced in the Commercial Rent (Coronavirus) Bill will establish a legally-binding arbitration process for commercial landlords and tenants who have not already reached an agreement, following the principles in the Code of Practice. 

The Bill will apply to commercial rent debts related to the mandated closure of certain businesses such as pubs, gyms and restaurants during the pandemic. Debts accrued at other times will not be in scope.

For further information visit GOV.UK.

Source: Business Wales News News | Business Wales (gov.wales)
Posted on: Wednesday 1st December 2021