The Commercial Rent (Coronavirus) Act 2022 – New Moratorium on Landlord Enforcement Action Now in Force

The Commercial Rent (Coronavirus) Act 2022 (CRCA) was enacted on 24 March 2022.

The Act creates a new power enabling business tenants, who had to close their business due to coronavirus restrictions, to be granted relief from payment of certain debts (mainly rent, service charges and interest) which accrued between 20 March 2020 and the date the restrictions affecting their particular business ended, i.e. 12 April 2021 for non-essential retail and leisure, 13 May 2020 for garden centres and 18 July 2021 for hospitality and nightclubs (the relevant protected period); and a new arbitration process through which that power may be exercised if the landlord and tenant have not been able to agree what relief (if any) should be afforded to the tenant. A tenant (or landlord) wishing to invoke the new mechanism will need to refer the matter to arbitration with 6 months of 24 March 2022.

During the 6 month moratorium period landlords are prohibited from taking certain enforcement action in relation to unpaid rent, service charges and interest which accrued during the protected period.  The types of enforcement action that are prohibited during the moratorium period include forfeiture, Commercial Rent Arrears Recovery (CRAR), draw down against deposits; commencing, continuing with, or enforcing claims for money judgments and presentation of winding-up and bankruptcy petitions.

This is a very brief summary of the main provisions of the Act and before taking any action, either as a landlord or a tenant in relation to the arbitration procedure or enforcement of arrears of rent, service charges or interest, we recommend that you contact us for advice on 01603 677077 or or