Covid-19 - Property advice for business

Our daily series of guides designed to offer practical advice to support your business.

For many businesses the financial packages offered by the UK Government, trying to keep the economy afloat during the coronavirus pandemic, will provide much needed support and respite. Nonetheless, if the stories being reported are to be believed, for many companies the money cannot come quickly enough with the Business Secretary acknowledging over the Easter weekend that ‘more money needs to go out faster’.

Unsurprisingly we are hearing from landlords, following the March quarter date, of requests from tenants for rental holidays in the light of a drop in business caused by the coronavirus pandemic.

On Wednesday 18 March, the government announced measures in an attempt to provide some reassurance for both residential landlords and tenants. We are not sure how reassured either landlords or tenants will be.

The Government has announced extra protection for businesses by placing a moratorium on commercial landlords’ sanctions for at least three months so that those who cannot pay their rent because of cashflow difficulties related to the coronavirus will be protected from eviction.

The World Health Organisation has recognised Coronavirus (COVID-19) as a public health emergency of international concern which has caused the UK real estate market to take a hit.

Commercial leases are unlikely to include provision for rent suspension in circumstances of a health epidemic and tenants will be left to try and negotiate a rent-free period or discounted rent with their landlord.