The Daily Telegraph has reported a code of conduct is being developed by the government to relieve the steadily deteriorating relationship between a growing number of commercial landlords and their tenants, who either cannot or will not pay rent. Its purpose is to establish rules that will assist both sides to resolve disputes that have escalated during the pandemic.
A worrying statistic was quoted: commercial landlords collected around one third of the £2.5 billion usually paid by retail tenants on the March quarterly rent day. It is anticipated that June will be worse.
Hopefully, this situation will improve quickly when the pandemic restrictions ease, but it does mean many Lenders will show understandable caution in the sector.
Landlords and property investors will probably need to look beyond their usual providers if they need to borrow additional funds.
Commercial Finance Brokers are in a good position to help, so long as they have access to the entire regulated market.
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