High street businesses and landlords are set to benefit from a new code of practice, which is in development to provide them with clarity and reassurance over rent payments.
High street businesses and landlords are set to benefit from a new code of practice, to provide them with clarity and reassurance over rent payments.
A working group has been established by the government with the commercial rental sector to develop a code which encourages fair and transparent discussions between landlords and tenants over rental payments during the coronavirus pandemic and guidance on rent arrear payments and treatment of sub-letter and suppliers. This will enable collaboration and cooperation within the sector and help ensure no one part of the chain shoulders the full burden of payment.
The group will also seek to involve wider business input through its sector members to ensure a greater number are consulted and able to share their views
The code will be temporary in nature and the government will explore options to make it mandatory if necessary. We will engage with Devolved Administrations to ensure the code applies across the UK and are working to publish it prior to the next quarterly rent payment date.
Today’s announcement comes as UK Finance confirms its members’ continued support for commercial landlord customers including amendments to facilities and capital payment holidays.
Ahead of the June payment day, all the main commercial lenders will be in contact with their major commercial landlord borrowers to identify concerns they have and provide support where appropriate.
Communities Secretary, Rt Hon Robert Jenrick MP said:
We are developing a new code of practice, working alongside the industry’s leading bodies, to provide that clarity and reassurance to both commercial tenants and their landlords in recognition of the challenges they are facing as a result of coronavirus. We expect all parties to come to the table so our high streets and town centres are in the best possible position to come back from these challenges We are giving clarity to landlords and tenants who are both facing equal pressures on their finances so they are all able to stabilise their finances and bounce back.