The Government has published a Temporary Code of Practice for landlords and tenants during the Covid-19 crisis.
The Code was issued on 19 June 2020 and follows consultations with British Chambers of Commerce, British Property Federation, British Retail Consortium, Commercial Real Estate Finance Council, REVO, Royal Institution of Chartered Surveyors and UK Hospitality.
It aims to guide and encourage landlords and tenants to work together in order to protect viable businesses and assist a swift economic recovery and will apply until 24 June 2021.
Liz Shaw, director at Wake Smith Solicitors looks at the change.
“The Code is voluntary and non-binding but proposes a framework for best practice in commercial lease rent discussions during the Covid-19 crisis.
“Whilst commercial tenants will welcome the Code and the statutory extensions, landlords already struggling with reduced recovery of the March Quarters rent, will face a similar situation in relation to the June Quarters rent payments.
“The Code expects both landlords and tenants to share the pain in a proportionate and measured way.
“However, some argue that it introduces little of substance that isn’t already happening within the commercial property market.”
For further details on property litigation matters contact Liz Shaw at Wake Smith Solicitors on 0114 266 6660.
