Following the coronavirus outbreak the government began restricting the ability of landlords to recover unpaid rent back in March 2020. The Coronavirus Act 2020 ended forfeiture for non-payment of rent and the Corporate Insolvency and Governance Act 2020 restricted the use of winding-up petitions and statutory demands. On 1st October 2021 (a full eighteen months later) the second of those protections began to be lifted. However, restrictions on the recovery of commercial rent arrears are set to remain in place until 25 March 2022.
This begs the question, what exactly will emerge from these premises come that date? Will these businesses that have been protected from eviction be able to thrive or (as many landlords’ fear) will our high streets be full of so called ‘zombie occupiers‘?
With less than six months’ to go until the end of the government’s rent moratorium period now is the perfect time to take legal advice on how to swiftly end the occupation of tenants’ who have no chance of paying up.
This means that the end of the moratorium will become a crucial moment for the retail sector. Retailers will either have been provided with enough time to recover sufficient revenue to trade successfully, or it may become the catalyst for a marked increase in the supply of vacant units. The true number of these so-called zombie occupiers will therefore only become apparent as of next spring.
https://www.savills.co.uk/blog/article/319507/commercial-property/what-does-the-future-hold-for-the-retail-market-when-the-covid-19-rent-moratorium-ends-.aspx