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Commercial property eviction ban extended to September giving struggling car dealers breathing space

Time 11 months ago

Car dealers struggling to pay their rent will not be evicted from their commercial premises as the ban on removing tenants has been extended to the end of September.

The government has today extended the measures designed to prevent landlords evicting tenants who have not paid their rent.

Tenants cannot be evicted until at least the end of September, moved forward from the original June 30 date first introduced at the start of lockdown, as many firms continue to struggle with rents.

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The motor trade got back in action in earnest this month, however this breathing space could prove a lifeline to many.

The new code of practice will encourage tenants to continue paying their rent in full if they can – with help from government subsidies and financial support including tax breaks.

Communities Secretary Robert Jenrick said: ‘As our high streets come to life and our town centres open for business, it is crucial that both landlords and tenants have clarity and reassurance as they seek to keep their finances stable and bounce back.

‘That is why we are extending measures to protect those who are unable to pay rent from eviction so that businesses have the security they need to plan for their futures.’

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He pointed out that the new code was developed and signed alongside the British Chambers of Commerce, British Property Federation, British Retail Consortium, the Commercial Real Estate Finance Council, Revo, the Royal Institution of Chartered Surveyors, and UKHospitality.

British Property Federation chief executive Melanie Leech said the move comes as landlords and tenants continue working together in the majority of cases.

She added: ‘The success of landlords and tenants working together as economic partners is vital to the UK’s recovery and to help ensure that viable businesses in distress as a result of coronavirus are supported, to protect both people’s jobs and the local authorities, savers and pensioners who own the majority of our town centres.’

Helen Dickinson, chief executive of the British Retail Consortium, added: ‘The ongoing pandemic presents an enormous threat to the survival of thousands of retailers, and the millions of jobs they support.

‘The necessary closure of most shops during lockdown has created a gaping hole in many retailers’ finances.

‘This has been exacerbated by continued rent demands on stores around the country, even where most have been closed for business. A solution is needed.’

Dealerships to be protected from aggressive rent collection

James Baggott's avatar

James is the founder and editor-in-chief of Car Dealer Magazine, and CEO of parent company Baize Group. James has been a motoring journalist for more than 20 years writing about cars and the car industry.

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