Legal Advice on Commercial Rent Arrears Disputes

Commercial Rent (Coronavirus) Bill and Code of Practice

Specific rules apply for dealing with rent disputes involving tenants whose businesses were adversely affected during lockdowns instituted due to the coronavirus pandemic.

New legislation in the form of the Commercial Rent (Coronavirus) Bill is in the process of establishing a new binding arbitration scheme. The scheme aims to resolve rent arrears arising out of the pandemic while prioritising the solvency of both the tenant and the landlord if at all possible. To underline this protection, parties are prevented from using traditional Court insolvency or debt recovery action while the scheme is in force, in order to reduce the strain on the Courts and hopefully speed up the process of settling the arrears.

It is important to note that the legislation and updated Code of Practice will not apply to all businesses and all rent arrears accrued during the pandemic, so please make sure to speak to an expert to ascertain whether (or how much of) the arrears will be “ringfenced” under the legislation, and so they can advise you on the optimal route forward in relation to any other money that you may owe or be owed.