BLB Solicitors
  • +01225 755656
  • info@blbsolicitors.co.uk
BLB Solicitors
  • +01225 755656
  • info@blbsolicitors.co.uk
  • Home
  • Services for You
    • Conveyancing Solicitors
    • Leasehold Property Rights
    • Property Dispute Solicitors
    • Divorce, Family Law and Mediation
    • Lifetime Planning and Wills
    • Probate and Estate Administration
    • Personal Injury Compensation
    • Medical Negligence Solicitors
  • Services for Business
    • Commercial Property
    • Commercial Property Dispute Solicitors
    • Corporate & Commercial Legal Advice for Business
    • Estate Management Solicitors
  • BLB Solicitors Locations
    • Almondsbury Solicitors
    • Bath Solicitors
    • Bristol Solicitors
    • Bradford on Avon Solicitors
    • Swindon Solicitors
    • Trowbridge Solicitors
  • About Us
    • Our Team
    • Working for BLB
    • BLB Solicitors – How we work
    • Making Payments to BLB Solicitors
    • Instructing BLB Solicitors
    • Terms of Business
    • Complaints Policy
  • Blog
  • Contact Us

Home » Two thirds of retailers facing legal action after 30 June

Commercial Property
Closed Down on retail window
Jun 2nd, 2021

At BLB Solicitors, our goal is simple – to deliver you clear, practical legal advice and cost-effective solutions. We hope you enjoy exploring our Blog. If you can’t find what you’re looking for, please do contact us.

Two thirds of retailers facing legal action after 30 June

Commercial Property specialist, Caroline Entwistle, considers the troubled retail sector, as current protections for commercial tenants are set to end on 30 June.

Our Commercial Property and Commercial Property Disputes Teams are available on 01225 462871. You can also contact them by email, or by completing the Contact Form at the foot of this page.

While the increasingly used phrase, ‘retail apocalypse’, might seem a little dramatic, no one can deny that the one in seven empty retail units in our town centres are of considerable concern. And they form only the first chapter in a still-unfolding story.

Rent moratorium

Calendars around the country will have been turned yesterday to reveal a circle around 30 June, the date after which commercial landlords in England hope to be able to reassert some control over their premises. Until then, a landlord’s options when faced with non-payment of rent remains limited by:

  • the moratorium on forfeiture;
  • a restriction on the use of Commercial Rent Arrears Recovery (CRAR) – currently, it can only be used where tenants owe at least 457 days’ rent between 25 March and 23 June 2021, and 554 days’ rent between the 24 and 30 June 2021;
  • a temporary ban on issuing winding-up petitions where the inability to pay debts is caused by COVID-19.

Call for evidence

But 30 June may not see the end to landlords’ frustrations – or indeed hope for tenants – as, “faced with a ‘tsunami’ of store closures“, the government has been actively seeking views on the next steps for withdrawing or replacing these measures.

British Retail Consortium

One thing is for certain though, lockdown has led to stratospheric levels of rent arrears across the retail sector. According to the British Retail Consortium (BRC), accumulated rent debt currently stands at an eye-watering £2.9 billion, and they estimate that a staggering two-thirds of retailers have been told by their landlords they face enforcement action at the end of this month.

Around 30% of retail tenants say they have already faced County Court Judgements over rent arrears, and 80% say that landlords have given them less than a year to pay their arrears or face forfeiture.

Code of Practice

Last year, the government introduced a Code of Practice aimed at dealing with outstanding rent debt issues. Unfortunately, two-thirds of retailers surveyed describe the Code as ‘ineffective’ due to its voluntary nature. The BRC said the government must give the Code greater weight, in addition to taking other measures to support both tenants and landlords. They believe these measures should include:

  • ringfencing rent arrears that have accumulated during the pandemic and extending the moratorium in respect of these arrears until the end of the year;
  • extending the protections on these rent debts to include County Court Judgements;
  • introducing compulsory arbitration from 1st January 2022, using the Code of Practice “to give teeth to this otherwise weak process”.

Watch this space…

Caroline Entwistle
Request a Call Back

Recent Articles

  • Commercial rent moratorium ends
  • Covid-related commercial rent arrears: new arbitration scheme from March 2022
  • Sale of commercial property: a guide
  • Commercial lease forfeiture moratorium further extended until March 2022
  • Consultation opens on protections for commercial tenants

Newsletter Sign-up

* indicates required

Share this article

You may also like...
  • Mar 17th, 2021
    Challenging lease service charges: a guide
    Read Article
  • Apr 21st, 2021
    Rights of light explained
    Read Article
View All Related Articles
Get in-touch today
Contact Form

Left Column

Right Column

Centre

 
Sending
  • Bristol Solicitors

    0117 905 5308
  • Bath Solicitors

    01225 462871
  • Bradford on Avon Solicitors

    01225 866541
  • Swindon Solicitors

    01793 615011
  • Trowbridge Solicitors

    01225 755656
  • Almondsbury Solicitors

    0117 905 5308
Authorised & Regulated by Solicitors Regulation Authority (No. 636644)
©2022 BLB Solicitors | Terms | Privacy | Legal