By Anna Jordan on Small Business – Advice and Ideas for UK Small Businesses and SMEs
The communities secretary is facing new calls from retailers to force landlords to waive at least 50 per cent of rent debts accrued during the pandemic.
The Commercial Tenants Association, representing 500 businesses, has written to Robert Jenrick suggesting that the government adopts an Australian-style strategy to deal with rent debt. Under Australia’s rent relief scheme, it was mandatory for landlords to agree to a reduction in rent payable, up to 100 per cent, relative to the reduction in the tenant’s business during Covid-19. The scheme required landlords to waive 50 per cent of the total reduction in the rent payable and accept deferral of the remaining balance paid back in instalments over the remaining time on their lease.
CTA’s founder and chief executive, Peter Bell, said: “What we’re really calling for is for the government to impose a minimum of 50 per cent rental relief, in the form of a waiver to be agreed between the landlord and tenant.
“We’re hoping that arbitration is set up in a way that’s open, fair and transparent. We want to see a fair scenario where tenants are listened to and