Analysis Of Call For Evidence On Commercial Rents

The Ministry of Housing, Communities and Local Government has published an analysis of the evidence that they received in relation to the call for evidence from businesses on their experiences trying to negotiate settlements on rent debt during the pandemic. The call for evidence also sought views on several options for withdrawing or replacing the existing tenant protection measures that will inform moves that the Government is making to resolve this issue.

Main findings

• The vast majority of businesses affected were pubs & bars, restaurants and accommodation providers
• The location of impacted businesses was reasonably evenly spread throughout England
• 53% of businesses believe that only 0-20% of landlords were acting in accordance with the Government’s code of practice on rent settlement negotiations.
• The preferred option for businesses to resolve the issue of rent settlement was binding arbitration
• The preferred option for landlords is to allow the current tenant protection measures to expire

The government has published a policy statement in response.