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£8 billion in unpaid rent with eviction moratorium soon to end

3rd March 2022

As the end of the eviction moratorium draws closer, unpaid commercial rent is estimated to stand at £8 billion. 

The end of the moratorium banning the eviction of commercial tenants, for non-payment of rent, aligns with the traditional quarter day on the 25th of March.

By this time, Remit Consulting‘s predictions indicate that the total rent and service charge shortfall will have increased by a further £5.4 million to around £8 billion since the start of the pandemic.

There have also been prohibitions preventing forfeiture, the use of commercial rent arrears recovery (CRAR) and winding-up petitions in place since this time.

From the end of March, Remit Consulting believe that there will be greater clarity for landlords and investors regarding the recovery of these monies. However, the sheer size of the outstanding amount will continue to have a serious financial impact on commercial property owners and tenants for years to come.

Indeed, whilst collection figures have recently improved, after considerable inconsistency over the two-year pandemic period, the rapid growth of the backlog in the early stages created a substantial initial sum that has slowly been built upon up until this point.

The Code of practice for commercial property relationships following the COVID-19 pandemic was updated at the end of 2021 to further aid commercial landlord and tenants during pandemic-related disputes. Moreover, the draft of the Commercial Rent (Coronavirus) Bill has recently been published and it includes procedures for tackling the pandemic rent debt.

The CTA has campaigned tirelessly to support commercial tenants whilst this Bill was drafted, yet it seems that the Government has only recently begun to realise the scale of the issue that must be tackled.

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