Business secretary Alok Sharma has set out the UK government’s newly issued temporary ban of statutory demands and winding up orders where a retailer is unable to pay bills due to the Covid-19 crisis. A statutory rent demand issued by the landlord typically gives retailers 21 days in which to pay their owed rent.
The ban will also prevent landlords from using Commercial Rent Arrears Recovery – which allows a landlord to collect overdue rent without the need for a court order – to collect rent unless they are owed 90 days of unpaid rent.
Sharma said: ““In this exceptional time for the UK, it is vital that we ensure businesses are kept afloat so that they can continue to provide the jobs our economy needs beyond the coronavirus pandemic.”
“Our unprecedented package of support can help commercial landlords, including through the recent expansion of the Coronavirus Business Interruption Loans Scheme.
“I am also taking steps to ensure the minority of landlords using aggressive tactics to collect their rents can no longer do so while the Covid-19 emergency continues.”
However, the government has urged occupants to “pay rent where they can afford it or what they can in recognition of the strains felt by commercial landlords too”.