COVID-19: support for landlords and renters

13 October 2020


In the framework of new wave of COVID-19 the UK business faced an economic emergency. Therefore, the UK Government has announced the new measures to help businesses.


New amendments apply for England and Wales. They cover both residential and commercial lettings. For residential tenancies landlords are not able to start possession proceedings unless they have given their tenants six months’ notice.


The last changes to measures for commercial landlords and renters extend the period of measure until 31 December 2020, being the measure intended to help economic system in the wake of the COVID-19 outbreak.


Residential tenancies


New residential tenancies measure protects individual renters in the UK. The key provision is that from 29 August 2020, with the exception of the most serious cases, landlords are not able to start possession proceedings unless they have given their tenants six months’ notice. This means the landlord will not be able to start the court process until the end of this period.

Where does the measure apply?

This measure applies to most tenants in the private and social rented sectors in England and Wales.

When does a measure take effect?

Are the provisions retrospective?

What is the exception for six months’ notice?

What to do in case of accruing rent arrears?

What can I do about rent arrears?

Should the landlords repair the premises?

I’m a shared owner. How does this affect me?


Business tenancies


New business tenancies measure protects business renters in the UK. Thanks new measure commercial tenants are protected from eviction if they cannot pay their rent.


What is the essence of the support?

The main idea is that no right of re-entry or forfeiture for non-payment of rent may be enforced in any way during the specified period.

Where does the measure apply?

What is time frame of this measure?

What tenancies do the restrictions apply to?

What is with existing litigation?

Who should provide/ pay for additional services?

What is with failure to pay?

Must Tenants "keep open" their Premises ?

Will insurance help?

Company Voluntary Arrangements (CVAs)

Summary

Landlord and tenant amendments are a temporary measure only. This approach will be terminated in a short period.


Residential tenancies measure helps individual renters to save their home. Business tenancies measure in fact is a rent deferment for commercial tenancies.


Due to the fact that the situation is changing rapidly, the provisions may be changed or updated in the near future.


Lef Measures due to COVID-19 support for landlords and renters
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For further information on any of the points above contact

Mikita Makayou at mikita@lexefiscal.com, or

Dr. Frank at clifford.frank@lexefiscal.com

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