Today the government extended its moratorium on commercial tenant evictions to December 2020 in a bid to protect jobs. The move will likely further deepen divisions between high street tenants and landlords.
Damian Webb, partner at RSM Restructuring Advisory LLP, comments: ‘The extension of the moratorium will be welcomed by a range of high street retailers and restaurants but will increase the pressure on Landlords.
‘The extension will mean that in numerous cases by December 2020 many landlords will not have received any rent for nearly twelve months. Noting the range of individuals who invest in the commercial property sector this absence of income will regrettably be causing pronounced issues for those affected landlords.
‘Eventually the deadlock must end and a more sustainable approach for both tenants and Landlords needs to be found.’
Robert Jenrick MP, the secretary of state for housing said extending the ban until the end of the year would give struggling high street retailers and restaurant chains a chance to ‘focus on rebuilding their business over the autumn and Christmas period.’