New binding arbitration process introduced to manage recovery of pandemic commercial rent arrears
This course will walk you through the new moratoriums on enforcement measures that were put in place while arbitrations are ongoing – but it is unclear how much take-up there will be of the process.
From 24 March 2022, it will be all change for the recovery process of rent arrears that have accrued since the start of the Covid-19 pandemic in the UK over two years ago. It marks the end of a number of moratoriums that were put in place at the start of the first lockdown, and which have subsequently been extended, as well as the commencement of a new arbitration scheme to deal with rent debt accrued during successive lockdown periods.
A large number of landlords and tenants have already agreed terms to deal with pandemic-related arrears but with an estimate of between £7 billion and £9 billion in rent debts, largely in the retail and leisure sectors, there is still a significant amount of arrears to be settled.
But will the measures be enough to reset the balance and avoid a spike in insolvencies?
By the end of this course, you should be able to:
- Understand the arbitration process of Commercial Rents (Coronavirus) Act and what sums are protected
- Understand the actions landlords will be unable to take in relation to Protected Rent Debt