New law in place to help resolve certain remaining commercial rent debts
From 25 March 2022, a new law is in place to help resolve certain remaining commercial rent debts accrued because of the pandemic.
This means that from this day, a legally binding arbitration process will be available for eligible commercial landlords and tenants who have not already reached an agreement. This will resolve disputes about certain pandemic-related rent debt and help the market return to normal as quickly as possible.
The law applies to commercial rent debts of businesses including pubs, gyms and restaurants which were mandated to close, in full or in part, from March 2020 until the date restrictions ended for their sector. Debts accrued at other times will not be in scope.
While the general moratorium on commercial evictions and restrictions on Commercial Rent Arrears Recovery (CRAR) in England and Wales has now ended, eligible firms will remain protected for the next 6 months during which arbitration can be applied for or until the conclusion of an arbitration.
Commercial landlords and tenants are encouraged to negotiate agreements using the updated Code of Practice. However, if an agreement cannot be reached, the new binding arbitration system can be used as a last resort for eligible businesses.
For more information, visit the government website.
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