The British Property Federation has urged any business in financial distress on today’s June rent quarter day to refer to the government’s code of practice for landlords and tenants.
The voluntary code, which was developed with leaders from the retail, hospitality and property sectors, was published last week as a framework for discussions between tenants and landlords.
Melanie Leech, chief executive of the BPF, said that the majority of property owners and occupiers are “working well together” and creating “shared solutions” to mitigate the impact of coronavirus.
However, she stressed that well-financed businesses that are able to pay their rent “should do so”.
“For any business that is concerned about how it is going to meet its rent obligations, I urge you to refer to the government’s code of practice for commercial real estate, published on 19 June, as a way to engage with your landlord,” she said.
“Businesses in genuine need of support will find landlords wanting to offer what support they can, and a range of possible options in the code – including flexibility around rents and other lease terms, which could include moving from quarterly to monthly rent payments and providing rent deferrals or payment holidays, depending on individual businesses’ financial circumstances.”
She added: “The code builds on the many examples of good practice and reinforces the importance of constructive collaboration – not only over the next few months and once the government’s temporary legislative interventions come to an end later this year, but for the long term.
“The success of landlords and tenants working together as economic partners is vital to the UK’s recovery, and to help ensure that viable businesses in distress as a result of coronavirus are supported, to protect both people’s jobs and the local authorities, savers and pensioners who own the majority of our town centres.”
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