New Code of Practice for Commercial Tenancies
The government has produced a voluntary code of practice to apply across the whole of the UK to help commercial landlords and tenants (including agricultural tenancies) plan a recovery from the Covid-19 pandemic. It aims to promote good practice and flexible attitudes on both sides to enable sensible negotiations through these difficult times to aid economic recovery.
In particular, it encourages tenants to pay their rent in full if possible but otherwise to pay as much as they can, while inviting landlords to be pragmatic where there are difficulties.
The Code of Practice has been put in place with leading business representatives and will sit alongside current reliefs, grants, loans and tax deferrals in place. It is hoped that this will help landlords and tenants to work collaboratively to agree arrangements that will allow businesses to recover, even if the arrangements are temporary.
Further details can be found at:https://www.gov.uk/government/publications/code-of-practice-for-the-commercial-property-sector
(Written by Lucy Back)