The
Government has announced its plan for a new mandatory statutory arbitration procedure
for commercial leases, to resolve disputes arising out of the Covid pandemic;
in addition, it has further extended the rent moratorium to 25 March 2022.
Details
of the proposed legislation is awaited however, landlords and tenants are
likely to be required to submit their rental disputes to arbitration, which the
Government has suggested “could be done by waiving some of the total amount or
agreeing a longer-term repayment plan”; this will be delivered by private
arbitrators whose impartiality has been approved, acting in accordance with
guidelines to be set out in the new legislation.
This will
presumably replace the Government’s voluntary Code of Practice issued in June 2020.
The Government
has also extended to 25 March 2022 the temporary ban on the use of forfeiture
for non-payment of rent, Commercial Rent Arrears Recovery (CRAR) and the issue
of statutory demands and winding up petitions where a company’s inability to
pay is due to COVID-19.