Government extends eviction ban

The move, which stops landlords from taking tenants to court for non-payment, was due to end on 30 June. It is estimated that firms in retail and hospitality are currently £5bn in rent debt.

The government also unveiled plans to introduce new legislation to help tenants and landlords work together. A full consultation is due in the coming days with further detail.

ACS chief executive, James Lowman, said: “Convenience stores haven’t been forced by law to close during the pandemic, but a significant minority have been negatively impacted over the past 15 months, with some facing a long uphill battle to return to being viable. Stores in city centres have seen a dramatic reduction in footfall, and some stores in bus stations and shopping centres have closed because their host premises has been shut.

“These impacted businesses will welcome the extension of the moratorium on evictions until 25 March 2022. They will however be disappointed that they will not benefit from new legislation to establish binding arbitration with landlords, and we hope that the government and parliament will frame the new legislation to offer protection to all businesses negatively impacted by the pandemic.”

Helen Dickinson, chief executive of the British Retail Consortium, added: “This is a very welcome announcement, addressing an issue of vital importance in the nick of time. We will be looking closely at the details, but welcome the continued support provided by government to businesses.

“Just as retailers feared a wave of legal action by landlords, the government has stepped in to offer both landlords and tenants more time to negotiate. The last 15 months have seen extended periods of forced closure for retailers, preventing many from making the turnover needed to cover rents. Retailers need time to trade their way out of debt; this announcement does exactly that. We’re also pleased to see the government adopt our proposal for binding arbitration where agreements between parties cannot be reached.”

Alastair Lomax, partner at law firm TLT, said: “While today’s announcement undoubtedly provides a lifeline to many businesses and provides them with extra time to strengthen their coffers, tenants and landlords must continue to engage in positive dialogue to agree outcomes that allow both parties to return to a situation of financial health once normal market conditions resume. Mutually beneficial agreements can and must be found on a case-by-case basis and it is in the interest of all parties to strive to reach these before turning to arbitration or litigation.

“There is a huge amount at stake and much remains to be done but, in halting a potential avalanche of insolvencies and job losses, today’s news provides hope.”