The British Property Federation has issued a legal letter to allow landlords to defer rent from the 48,800 businesses affected by the riots.
The letter, drafted with law firm Hogan Lovells shows landlords how to give affected businesses the chance to defer rental payment as they get back on their feet.
Under many existing leases, the tenant continues to be liable and could be in breach of contract if they do not continue to pay their rent.
The Local Data Company estimates that 48,804 shops, pubs, restaurants and clubs have suffered directly or indirectly in the 28 town centres affected by the disorder. Of these, independent outlets were hit particularly hard.
BPF director of policy Ian Fletcher said: “While some retailers will have the benefit of insurance to cover the riot damage last week, others do not or may find it takes time to bring a claim and more generally to restock their business, which could leave them with significant cash flow problems.
“Where possible, landlords may wish to offer small- or medium-sized traders the opportunity to defer rental payments as they get back on their feet, and we hope this letter helps steer them through that process.”
Hogan Lovells’ partner Mathew Ditchburn added: “For smaller and independent traders it may be a while yet before their business is back to normal.
“This will mean large outlays for some that are difficult to absorb when there is little or no money coming in through the tills. In an economic environment that is already tough enough, no-one wants to see more people going out of business”
Nick.whitten@estatesgazette.com
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