Code of practice for commercial rental sector to support businesses through COVID-19

A new code of practice for the UK commercial rental sector aims to provide high street businesses and landlords with clarity over rent payments during the coronavirus pandemic.

The UK Government said it is currently working with the sector to develop a code that will help 'guide and encourage' all parties to work together to protect viable businesses and ensure a swift recovery.

The code of practice will be designed to ensure 'fair and transparent discussions between landlords and tenants' over rental payments during the crisis. The working group will also draw up guidance on rent arrears payments and treatment of sub-letters and suppliers.

It's hoped that this will enable cooperation within the sector so that no one part of the chain shoulders the full burden of payment.

With coronavirus placing an 'unprecedented strain' on property owners and the businesses that occupy their buildings, a united approach is needed, said Melanie Leech, Chief Executive of the British Property Federation.

She added: 'The majority of property owners and tenants are already working well together, effectively engaging and agreeing sustainable plans, and we welcome the opportunity to work with government and others to codify this good practice.

'Fair collaboration among lenders, property owners and tenants is vital to the UK's recovery and it will ensure that viable businesses in distress as a result of coronavirus are supported, to protect both people's jobs and the local authorities, savers and pensioners who own the majority of our town centres.'

Helen Dickinson, Chief Executive of the British Retail Consortium, welcomed the new code of practice as a 'positive first step' but added that 'all sides must be prepared to do more if necessary, given that the commercial lettings market is in need of wider reform'.

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