Government removes restrictions for landlords to recover unpaid rent in most situations

Save for limited circumstances, on Friday 25 March 2022 the last Covid-19 restrictions that were brought in during March 2020 have been removed.

Therefore, the old remedies of forfeiture (termination of the lease), Commercial Rent Arrears Recovery (CRAR) and insolvency processes such as statutory demand, bankruptcy petitions (individuals) and winding – up petitions (companies) can now be used. However, it must now also be remembered that a landlord can now once again waive the right of forfeiture over unpaid rent, something that during the Covid restrictions was very difficult to do.

It must also be noted that in certain cases for arrears or rent that is still unpaid, and that arose during the Covid-19 pandemic, the Government has introduced the Commercial Rent (Coronavirus) Act 2022 which allows where affected the landlord or the tenant to implement an arbitration procedure to deal with unpaid rent in specific circumstances and periods covered by this new Act.

Ramsdens specialist property disputes lawyers can advise on all aspects of rent arrears whether you are a commercial landlord or a tenant. Get in touch with us by calling 01484 821 500 or email info@ramsdens.co.uk to speak to one of our property dispute solicitors.