Happy New Year from the Property Disputes Team! What to expect in the year ahead

Business tenancies

2022 promises to continue to be a time of change for commercial landlords.

Protected rent debt

The government aims to pass the Commercial Rent (Coronavirus) Bill 2021-22 by 25 March 2022.  The Bill will ring-fence rent debts built up as a result of mandated business closures during the COVID-19 pandemic and introduce a new binding arbitration process aimed at resolving disputes relating to ‘protected rent debts’ where landlords and tenants have not been able to reach agreement on how those debts should be dealt with. A rent will be protected if the tenancy was adversely affected by coronavirus and was subject to a closure requirement during the period (England only) from 26 March 2020 to 11.55pm on 18 July 2021.

Landlords who issued court claims for these rent arrears on or after 10 November 2021 but before the Bill is in force will have claims stayed if one of the parties applies for a stay to enable the matter to be resolved by statutory arbitration or otherwise.

The Bill as drafted will not affect court claims started before 10 November 2021. Appeals in some of these cases where judgments have already been obtained are due to be heard in 2022.

Forfeiture and CRAR

The restrictions on forfeiture of business tenancies for non-payment of rent, and on the use of commercial rent arrears recovery (CRAR), will continue until 25 March 2022.

Residential tenancies

Section 21 notices and ASTs

In May 2021 the Queen's Speech reaffirmed that the government plans to push ahead with an end to "no fault" evictions of assured shorthold tenants by repeal of section 21 of the Housing Act 1988 and the introduction of a lifetime tenancy deposit. A White Paper is anticipated in 2022.

In Trecarrell House Ltd v Rouncefield the Court of Appeal decided that a landlord's failure to provide an AST tenant with a gas safety record before taking up occupation was capable of being remedied. Permission to appeal to the Supreme Court has been requested and a decision awaited. Watch this space!

To subscribe to our updates on property litigation matters contact Johanne Spittle, Director & Head of Litigation on York 09104 716000, Wetherby 01937 583210 or Malton 01653 692247