Government extends anti-eviction measures for businesses
Commercial landlords will be unable to evict struggling companies until the end of September, after the government extended anti-eviction measures.
The move comes as part of the government’s support package for companies hit by the coronavirus pandemic.
The suspension of the forfeiture of evictions will come as a relief in particular to pubs, cafes and restaurants, after the hospitality sector called upon the government for action in this area.
It comes after restaurant industry bosses wrote to Prime Minister Boris Johnson earlier this week, urging him to take drastic action to prop up the sector.
In the letter, written by Deliveroo boss Will Shu and signed by other chief executives, one key demand was to prevent evictions by commercial landlords.
Communities Secretary Robert Jenrick said: “As our high streets come to life and our town centres open for business, it is crucial that both landlords and tenants have clarity and reassurance as they seek to keep their finances stable and bounce back.”
Kate Nicholls, chief executive of trade body UK Hospitality said she was supportive of the measure, but added: “We remain of the view that further time and support is needed to facilitate a recovery for the hospitality sector, that is at the heart of our social lives and communities.
“The extension of the moratorium on aggressive enforcement and forfeiture is a welcome measure to allow this process to take place.”
It comes after the Financial Conduct Authority (FCA) proposed allowing consumers to extend a payment freeze on their credit cards by a further three months to support borrowers struggling financially from the pandemic.
Under the proposals from the markets watchdog, those who have not yet asked for a payment freeze on credit cards or for an interest-free overdraft of up to £500 could request one up until the end of October.
The extension to the payment holiday, which was introduced in April, would also enable customers to ask for a reduced interest rate on any overdraft borrowing above £500.