Commercial evictions ban extended...again - Boodle Hatfield

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09 Dec 2020

Commercial evictions ban extended…again

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2 min read

So, the ban on commercial evictions has been extended again.  No one can deny that many have been hit hard by the pandemic (and continue to suffer).  Shops, restaurants and theatres, to name just a few, have had an awful year - viable businesses that are now facing insolvency.  

The moratorium on commercial evictions may well have been a lifeline for some but is it right that it should remain in place, as originally devised, well into 2021, and is it right that it extends to all commercial premises?  

Property owners are businesses too and the removal of one of the best tools in their arsenal, to ensure compliance by tenants of the lease covenants, has hit them hard, not least with an estimated £4.5billion shortfall in payments.  We should not forget that most of us have an interest in the success of commercial property as it makes up a proportion of many pension funds' investments.  

As the pandemic moves into its second year the government really needs to consider a more nuanced approach to this legislation.  Those commercial occupiers that can pay their rent and comply with their lease covenants should not be afforded this protection.

The government has extended a ban on evictions of commercial property tenants until the end of March 2021.

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