New restrictions on evicting commercial tenants

Landlords and tenants of residential property are already likely aware that evictions of residential tenants are soon to be suspended for at least the next three months.

What has been less well-publicised is that the Government is also bringing forward emergency legislation to prevent many, if not most, evictions of commercial tenants.

The text of the new Coronavirus Bill can be found here.

Section 82 will have a large impact on commercial landlords and their tenants. The Bill is currently making its way through Parliament and may be changed. It is likely to come into force very soon.

The Bill as it stands will suspend landlords’ right to forfeit the lease and take back their property because of non-payment of rent until at least 30 June 2020, with power to extend this.

It appears that this Bill will apply to almost all properties let to a commercial tenant, save for certain exceptions such as certain leases of less than 6 months.

This Bill does not apply to take the property back for other breaches of the lease, such as failure to keep the property in repair.

The law in this area is fast-changing at the moment and we recommend that landlords take advice when considering taking back property.

Contact our Commercial Property Solicitors in York, Wetherby & Malton

If you would like more information about powers of attorney or wills, please contact us on  01904 716000 (York), 01937 583210 (Wetherby), 01653 692247 (Malton), on or fill out our online enquiry form.