Government extends the ban on business eviction until March 2022


The ban on eviction of business tenants was due to end this month. Any business that has stopped paying rent due to the coronavirus crisis will not be evicted in July.

Clearly there are two sides to this argument. Businesses are able to maintain their physical position, but landlords are upset that rent arrears will build up for a further nine months.

The government have blocked landlords from evicting their business tenants to soften the economic effect of the pandemic.

Why have they extended the ban on eviction?

Many businesses were concerned that once the eviction ban was over that their landlords would demand the repayment of arrears immediately. However, businesses need time to trade and build funds to pay off the debt accrued.

Restrictions have meant that many businesses could only trade under reduced capacity. Therefore are not profitable enough to start paying full rent.

What about landlords?

Although the government have helped business there is nothing currently supporting landlord’s dependent on the rent from their business clients.

With no government help for the loss of rent; landlords are taking the burden. They have to weather a further nine months without aid.

What is the solution?

The government have announced legislation that will help the tenants and landlords come to an agreement. Our experts can help draft a formal agreement that either waives some of the rental arrears or outlines a longer-term repayment option. The team helps both businesses and landlords by assessing the options available to ensure that both parties get a preferable solution.

Many in government expect landlords to make concessions and allowances but the impact on their finances might not allow them to do so. Therefore, if an agreement cannot be made then there will be an arbitration process leading to a formal binding agreement. Our lawyers can help you to argue your position and ensure that you get the best possible outcome from arbitration.

What can we do?

Our lawyers can help establish a suitable solution for you, while taking into account the commercial situation of both parties. We can help make a plan for repayments of arrears and present options to the other party.

Further, our team negotiate with the other side in an attempt to find and draft a mutually beneficial agreement. We can draft or review agreements prior to you signing to give you peace of mind.

If unable to find a suitable solution, we can offer support to during the arbitration process.

For more information see the government’s press release.

If you want more information about some of our business services click here or are looking for debt recovery assistance then click here. Feel free to get in touch and discuss with our experts.