High street businesses and landlords are set to benefit from a new code of practice, to provide them with clarity and reassurance over rent payments
High street businesses and landlords are set to benefit from a new code of practice, which is in development to provide them with clarity and reassurance over rent payments.
A working group has been established by the government with the commercial rental sector to develop a code which encourages fair and transparent discussions between landlords and tenants over rental payments during the coronavirus pandemic and guidance on rent arrear payments and treatment of sub-letter and suppliers. This will enable collaboration and cooperation within the sector and help ensure no one part of the chain shoulders the full burden of payment.
The group will also seek to involve wider business input through its sector members to ensure a greater number are consulted and able to share their views.
Communities Secretary, Rt Hon Robert Jenrick MP said:
The Chancellor of the Exchequer, Rishi Sunak MP said:
Helen Dickinson, Chief Executive of the British Retail Consortium said:
Melanie Leech, Chief Executive, British Property Federation said:
Kate Nicholls, CEO, UKHospitality said:
The code will be temporary in nature and the government will explore options to make it mandatory if necessary. We will engage with Devolved Administrations to ensure the code applies across the UK and are working to publish it prior to the next quarterly rent payment date.
Today’s announcement comes as UK Finance confirms its members’ continued support for commercial landlord customers including amendments to facilities and capital payment holidays.
Ahead of the June payment day, all the main commercial lenders will be in contact with their major commercial landlord borrowers to identify concerns they have and provide support where appropriate.
The government’s package of measures for the commercial sector also includes;
These measures do not account to a rental holiday but allows breathing space for tenants facing significantly reduced income due to the closures measures and current economic circumstances. Rent is still owed, and those tenants who are able to pay some or all of their rent are expected to do so.
The government is also reminding the sector of the existing measures in place that affect the sector’s landlords, this includes:
Further Information
Further detail on support for commercial landlords and tenants can be found on the UK Finance website.