The new Code of Practice for Commercial Property relationships during the COVID-19 Pandemic has now been published by the Government.
Whilst this Code is voluntary, parties to Commercial Leases are encouraged to follow the Code of Practice. The Code confirms that tenants should continue paying their rent in full, if they are able to do so, and those that are not, should pay what they can. Some landlords may not see this Code as helpful enough to them, in the continuing difficulties they face, with many tenants still unable to pay the March or June quarter rents, as they cannot operate to full capacity.
The Code encourages both landlords and tenants to be transparent in their discussions and to act reasonably and responsibly as both parties will have been impacted significantly by the COVID-19 Pandemic. The intention of the Code is to represent best practice within the commercial property sector, and a number of the leading representative bodies within the commercial property sector have been involved in the development of the Code of Practice.
Many landlords and tenants still face difficult times ahead, but it is hoped that the Code of Practice will encourage the parties to work together to ensure the viability of both the tenants’ and landlords’ businesses.
If you require assistance in relation to any commercial property matters, please contact James John, Anthony Shalet or Natalie Walford of our Real Estate team or the Nicola Stewart of our Dispute Prevention & Resolution team.
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