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Govt expected to extend rent moratorium to 2022

Published:  16 June, 2021

The ban on commercial evictions, or rent moratorium, introduced during Covid-19 could be extended until 2022. 

Ministers are expected to announce later today that the moratorium for business tenants, which was due to end 30 June, will be extended for at least another six months, according to newspaper reports quoting government sources. 

Restrictions on landlords using laws that allow them to recover rent arrears by taking control of a tenant’s goods and selling them are also expected to be extended, while it is also understood that a new arbitration mechanism will be introduced to help landlords and commercial tenants resolve disputes over bad debt.

The news comes two days after Prime Minister Boris Johnson announced the delay of easing lockdown restrictions by four weeks until 19 July.

The latest extensions follows the three-month extension announced in March, when the government also announced that it was launching a call for evidence on commercial rents to help monitor the overall progress of negotiations between tenants and landlords.

Rent debt in the hospitality sector is estimated to be £2.5bn, with a third of premises having been unable to reach a rent debt solution with their landlords.  

A Treasury minister is expected to officially announce the moratorium extension during a statement on the economy in the Commons today.