UK govt extends ban on commercial evictions of businesses by three months

The UK government has extended the ban on commercial evictions of business owners — many of whom have had to cease trading entirely during lockdown – for another three months to 30 June 2021.

The decision will help those worst affected by the pandemic, such as bars and restaurants, get back to business in May when doors fully reopen for hospitality no earlier than 17 May.

However, the government has made clear that any businesses that can pay all or any of their rent should do so.

Residential tenants will also be supported as the ban on bailiff-enforced evictions in all but the most serious circumstances – such as incidents of fraud or domestic abuse – and the requirement for landlords to provide 6-month notice periods to tenants before they evict will also be extended until at least 31 May.

This will ensure residents in both the private and social sector can stay in their homes and have enough time to find alternative accommodation or support as we move through the roadmap.

With around 49% of hospitality workers and 36% of retail workers currently renting, the new measures will protect jobs as businesses reopen and many more renters can return to work.

Making this announcement housing secretary, Robert Jenrick said that it was right that that the government ensured that businesses and renters continue to be supported.

“We have taken unprecedented action to support both commercial and residential tenants throughout the pandemic – with a £280 billion economic package to keep businesses running and people in jobs and able to meet their outgoings, such as rent. These measures build on the government’s action to provide financial support as restrictions are lifted over the coming months – extending the furlough scheme, business rates holiday and the Universal Credit uplift,” said the housing secretary.

Business Secretary, Kwasi Kwarteng said that the government is doing everything we can to ensure businesses get the support they need to get through this pandemic and reopen when it is safe to do so.

Throughout the pandemic, the government has put in place a £280 billion package to support businesses and keep people in work and able to meet their rent and other outgoings and the confirmed 6-month extension to the furlough scheme and Universal Credit uplift will continue to provide financial security for millions.

For those who require additional support, the government has made £180 million of funding for Discretionary Housing Payments available this year for councils to distribute to support renters with housing costs. The £1 billion increase in Local Housing Allowance (LHA) rates – covering the lowest 30% of market rents – brings the total spend on supporting households to meet the cost of rent in the private and social rented sectors to almost £30 billion this financial year.

Ensuring that renters remain protected until the end of May, whilst national restrictions remain in place will align with the broader strategy for protecting public health and will continue to help reduce pressure on essential public services as we start to move out of lockdown. The government will consider the best approach to move away from emergency protections from the beginning of June, taking into account public health advice and the wider roadmap.

The government’s current position is to support commercial landlords and tenants to agree their own arrangements for paying or writing off rent debts by 30 June. This is supported by the code of conduct published by the government last year, setting out best practice for these negotiations. But, if these discussions do not happen and there remains a significant risk to jobs, the government is also prepared to take further steps.

We are therefore launching a call for evidence on commercial rents to help monitor the overall progress of negotiations between tenants and landlords. The call for evidence will also set out potential steps that government could take after 30 June, ranging from a phased withdrawal of current protections to legislative options targeted at those businesses most impacted by COVID-19. We would welcome a broad range of feedback to this call for evidence.

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