A Cumbrian law firm has spoken of a new law which will resolve commercial rent debts accumulated as a result of the pandemic.
Carly Davies, Debt Control Manager at Cartmell Shepherd Solicitors, which has offices in Carlisle, Brampton and Haltwhistle, explained: “The Commercial Rents (Coronavirus) Act 2022 provides for a legally binding arbitration process for eligible commercial landlords and tenants who have not yet reached an agreement.
“It is designed to resolve disputes over certain pandemic-related rent debts and help the market get back to normal as quickly as possible.
“The law applies to commercial rent debts of businesses, including pubs, gyms and restaurants which have been mandated to close, in whole or in part, from March 2020 until the end date of the restrictions for their sector.
“Debts accrued at other times will not be included.”
Business Minister Paul Scully said: “This new law will give commercial tenants and landlords the opportunity to draw a line under the uncertainty caused by the pandemic so that they can plan ahead and get back to business. normality.
“Landlords and tenants should continue to work together to reach their own agreements where possible using our code of practice to help them, and we have made arbitration available as a last resort.
“Tenants who can pay their rent debts in full should do so, and when they can’t, landlords should try to share the burden, so we can all move on.
“The Government encourages landlords and commercial tenants to negotiate their own agreement where possible, so that an arrangement to resolve the debt is mutually agreed upon, rather than resorting to the arbitration process.”