The government is to extend the lease forfeiture moratorium, preventing landlords from evicting commercial tenants until March 2022, the treasury has confirmed.
The moratorium, which came into effect in April 2020 in order to prevent businesses forced into closure and in rent arrears from being evicted, was due to elapse at the end of this month.
CLASS understands there is also a renewed bid to solve debt disputes between landlords and commercial tenants affected by the coronavirus pandemic, with a new, firmer code that would guide negotiations towards agreement over a 50% discount on debt.
Legally binding arbitration, which would force tenants and landlords to reach an agreement over pandemic debts, is also expected to come into effect and would apply to debts accrued between 23 March 2020 to 19 July 2021
The moves follow a government consultation with the hospitality industry on rent debt.