Government announces additional support for commercial tenants

Monday 21st June 2021

On 16 June 2021, the government announced additional support for commercial tenants:

Ringfence rent arrears

The most notable change is the proposed changes to legislation to ringfence rent arrears that have built up due to a business having to remain closed during the pandemic. Landlords and tenants will be required to come to an agreement on the treatment of the arrears, for example, waiving some of the amount due or agreeing a longer-term repayment plan. If agreement cannot be reached, a binding arbitration process will be put in place that ensures a legally binding agreement is made to which both parties must adhere.

Forfeiture Restrictions

Current restrictions on forfeiture of business tenancies for non-payment of rent are to continue in England until 25 March 2022.

Continued Restrictions

Service of statutory demands and winding up petitions will remain restricted for a further three months to protect companies from creditor enforcement action where the companies’ debts relate to the pandemic.

Crar Usage

The Ministry of Justice has confirmed that the minimum net unpaid rent that must be outstanding before commercial rent arrears recovery (CRAR) can be used will remain at 554 days.

Review of Landlord and Tenant Legislation

The government has also re-confirmed its intention to carry out a review of commercial landlord and tenant legislation, including Part 2 of the Landlord and Tenant Act 1954, later this year.

How can we help

In these challenging times for landlords and tenants the Commercial Property and Property Litigation Teams at Waldrons are happy to speak with you regarding any queries relating to commercial tenancies. Whether you are considering entering into a new lease or need guidance navigating an existing Landlord and Tenant relationship please contact us on 01384 811811 or e-mail us at