The end of moratorium on commercial landlord remedies

The much talked about Commercial Rent (Coronavirus) Act came into force on 25th March 2022; introducing a legally binding arbitration process to resolve outstanding commercial rent debts relating to the pandemic in circumstances where businesses were mandated to close in full or part from March 2020 until the date restrictions ended for their sector (protected rent arrears).

The window to apply for arbitration is six months from the date the legislation came into force. Arbitrators may award a reduction of protected rent debt and/or time to pay, with a maximum period to repay of 24 months.

Providing the debt does not fall within the protected rent arrears, enforcement action such as Commercial Rent Arrears Recovery (CRAR), forfeiture and winding up petitions can once again be used. However, where the debt does fall within the protected rent arrears, these remain off the table; as well as making a debt claim until six months’ arbitration application period has passed or until conclusion of arbitration.