Moratorium on landlord sanctions urged as multi-billion pound rent bill looms
The next pending rent day falls on 25 March.
A moratorium on commercial landlord sanctions and debt enforcement for hospitality businesses has been urged by trade body UKHospitality as a multi-billion pound bill faces under-pressure pubs and restaurants this week.
The group explained that the next pending rent day falls on 25 March with penalties in the lease if a payment is made late or there is a default. These, they say, include the landlord being able to seize the property after 28 days.
“The reality is that this is a critical week for bars and restaurants in London – and another incredibly difficult one. Our analysis suggests the quarter rent day for bars and restaurants is worth billions of pounds. This is money that simply isn’t in the system and most businesses cannot pay,” UKHospitality CEO Kate Nicholls said in a statement. “We are asking government to look at extending the legal moratorium on forfeiture to include commercial leases - to protect lessees, landlords and most importantly help support and pay our staff.”
The move, Nicholls says, will give operators time to negotiate and to focus on their teams.
UKHospitality also stressed that a moratorium on lease forfeiture will help businesses preserve capital until they receive the first payment from the government’s new job retention scheme.
