Following our recent update regarding the Government's proposed new Covid-19 rent arrears arbitration scheme, we were pleased to contribute to a discussion about the topic in this week's edition of Property Week (pages 47-48).  

Whilst the Government's plans have not yet been finalised, there appears to be widespread concern regarding the potential implications of any scheme that will, in effect, re-write commercial contracts (i.e. leases) that have been freely agreed between consenting parties.

Clearly, any legislative intervention must be carefully thought through. However, now that the Government has signalled that new legislation is on its way, any commercial settlements of outstanding rent arrears, which may have been in the pipeline, are likely to be struck by inertia. As such, if it is the Government's intention to return the commercial property market to "business as usual", it should provide details of the principles that will underpin the arbitration scheme without further delay.

Should you have any queries regarding the rent arrears arbitration scheme, or any outstanding landlord and tenant issues, please do get in touch.