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Additional Protection for Commercial Tenants in Wales and England
The Coronavirus Act 2020 (CVA 2020) came into force on 26 March 2020 and introduced emergency measures to temporarily deny landlords the right to forfeit (bring to an end) relevant business tenancies for the non-payment of rent. Under section 82 of the CVA 2020 landlords are prevented from exercising a right of re-entry due to the non-payment of rent during the “relevant period”.
The “relevant period” began on 26 March 2020 and was originally due to end on the 30 June 2020. In both England and Wales the “relevant period” was subsequently extended so that it would come to an end on the 30 September 2020. Further changes to the legislation have now been announced in both England and Wales so as to again extend these protections.
The Business Tenancies (Extension of Protection from Forfeiture etc.) (Wales) (Coronavirus) (No. 2) Regulations 2020 operate to extend the protections from forfeiture proceedings for the non-payment of rent in Wales to 31 December 2020.
Similarly, the Business Tenancies (Protection from Forfeiture: Relevant Period) (Coronavirus) (England) (No 2) Regulations 2020 (SI 2020/994) (Regulations) have been introduced to extend the protections from forfeiture in England to 31 December 2020.
In view of these new regulations, landlords with relevant business tenancies in both England and Wales will be prevented from exercising a right of re-entry or forfeiture, by action or otherwise, for the non-payment of rent until the newly extended relevant period expires. The introduction of these regulations represent the second time the relevant period has been extended in both England and Wales. It remains to be seen whether this will represent the final extension to the relevant period.
At JCP, we will be continuing to monitor the situation and the courts response to these new measures. Our Property Dispute Solicitors are on hand to provide advice and guidance through this challenging time.
For more information contact Head of Property Litigation, Sarah Davies, on 01792 529 617 or email sarah.davies@jcpsolicitors.co.uk.