Rent moratorium could be extended until 2022

The ban on commercial evictions, or rent moratorium, introduced during the pandemic could be extended until 2022, according to The Telegraph.

The newspaper has reported that ministers are expected to announce today that the moratorium will be extended for at least another six months, once again pushing back the end date, which was due on 30 June.

It also said a new arbitration mechanism will be introduced to help landlords and commercial tenants resolve disputes over bad debt.

Hospitality operators in England were left devastated on Monday after the prime minister announced a four-week delay to the easing of restrictions until 19 July, which falls after the moratorium date. It will be a welcome relief for those businesses that have been unable to negotiate with landlords and feared being kicked out of their premises at the end of the month.

Rent debt in the hospitality sector is estimated to be more than £2b and a third of premises have not been able to reach a rent debt solution with their landlords, who have been demanding payment in full from the moment the moratorium ends. One in five businesses said if a solution to the rent problem is not found, it would trigger insolvency or site closures.

The government undertook a review into discussions between commercial tenants and landlords earlier this year and said it would "not hesitate to intervene further" if there was evidence that productive discussions between landlords and tenants were not taking place and that this represented a substantial and ongoing threat to jobs and livelihoods.

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