The government released a "Code of Conduct" for Landlords and Commercial Businesses
Businesses and trade associates worked with the Government to publish a code of practice that will give commercial tenants and landlords 'clarity and reassurance' over rent payments.
The Government has set up a working group with presence from the commercial sector, developing said rules and regulations. The establishment of the working group hopes to encourage a fairer and more transparent discussion between landlords and tenants over rental and rent arrear payments brought by the Coronavirus pandemic.
The desired output of the code should help guide and encourage different parties to work together for a swift recovery and protection of business interests.
Comments and opinions from Thought Leaders lifted from www.gov.uk:
Communities Secretary, Rt Hon Robert Jenrick MP said:
· We are developing a new code of practice, working alongside the industry's leading bodies, to provide that clarity and reassurance to both commercial tenants and their landlords in recognition of the challenges they are facing as a result of coronavirus.
· We expect all parties to come to the table so our high streets and town centres are in the best possible position to come back from these challenges
· We are giving clarity to landlords and tenants who are both facing equal pressures on their finances so they are all able to stabilise their finances and bounce back.
The Chancellor of the Exchequer, Rishi Sunak MP said:
· The government is committed to supporting the commercial rental sector as it deals with the disruption caused by the coronavirus outbreak.
· We continue to work with lenders to ensure flexible support is provided to commercial landlords, including payment holidays and restructuring facilities, and it is right that where landlords receive support, they extend this to their tenants.
Helen Dickinson, Chief Executive of the British Retail Consortium said:
· The Coronavirus pandemic has accelerated longer-term trends in retail property. Rent demands are increasingly out of kilter with current property values and many retailers are being forced to pay rent on closed stores.
· We welcome the government's Code as a positive first step and are working constructively with it and landlords to ensure that otherwise viable businesses are not forced into administration. However, all sides must be prepared to do more if necessary, given that the commercial lettings market is in need of wider reform.
Melanie Leech, Chief Executive, British Property Federation said:
· Coronavirus is placing an unprecedented strain on property owners and the businesses who occupy their buildings, and we need a united approach in response.
· The majority of property owners and tenants are already working well together, effectively engaging and agreeing on sustainable plans, and we welcome the opportunity to work with government and others to codify this good practice.
· Fair collaboration among lenders, property owners and tenants are vital to the UK's recovery and it will 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.
Kate Nicholls, CEO, UKHospitality said:
· A code of conduct is a significant step in unlocking the current impasse in the commercial property market. Now is the time for all stakeholders to come to the table and broker an agreement.
· Hospitality businesses have seen revenues all but dry up since March, so government intervention is desperately needed - with a sustainable financial plan in place.
· Our sector needs enforceable measures in place so that the burden currently borne by operators is shared more equitably. This code could be pivotal in protecting communities and high streets from mass closures and job losses.
On June 19, the code has been made available here.
Note that the code is voluntary and is relevant for all commercial leases held by businesses.
