" Distressing times for Commercial Landlords? "
New regulations which abolish the common law remedy of distress ( seizing tenants goods in lieu of unpaid rent) are due to come into force next year. It will mean the end of a relatively cheap and swift remedy which is favoured by many commercial landlords as the best method of enforcement when tenants fail to pay their rent.
The new regulations, the Commercial Rent Arrears Recovery Regulations, will still allow landlords to seize goods but impose much stricter conditions and procedures on them before they can do so. There is a requirement to give notice to tenants which will surely take the sting out of a previously effective remedy. In addition the new regulations define rent very strictly and specifically exclude service charge.
The RICS has described the procedures as overly complicated and imposing too many conditions, however although no date has yet been set for these new regulations to come into force it is expected to be in Spring of next year. With the economy looking bleak, commercial landlords are likely to be handcuffed by the procedures and many may be forced to take legal proceedings instead. These changes might re energise Landlords' approach to the remedy of forfeiture.
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