To further buttress the temporarily unemployed section of people and business owners who have seen minimal to no sales in the recent past in various jurisdictions across the United Kingdom, the government has extended the ban on commercial as well as residential evictions. The extension of the eviction ban is likely to support the people who have encountered unforeseen reduction in the earnings due to the pandemic-led lockdown and related restrictions.
As the UK prepares to reopen in accordance with the exit roadmap laid out by the government, the eviction ban alongside the extension of the furlough scheme and several other programmes announced earlier last month are expected to provide the much-needed backing.
The support has been announced at a time when there are no clear signs of a complete reversal in the earnings of unemployed people and the uptick in commercial activities of the businesses that were hit due to Covid-9 restrictions.
Extension of eviction ban
According to the latest directive issued by the Ministry of Housing, Communities & Local Government, the ban on residential evictions has been extended until May 31, while the commercial evictions have been suspended till June 30, 2021. The businesses have been provided with seemingly adequate monetary support to ensure that the commercial functioning is well supported when they reopen.
However, the government has made it clear that the businesses which are able to make the rent payments fully or partly should oblige. Later this year, the government is likely to launch a review of commercial landlord and tenant legislation.
A wide range of issues pertaining to Landlord & Tenant Act 1954 Part 2 is expected to be discussed under the comprehensive review. Further, the government will be gauging the potential impacts of coronavirus pandemic on the market, besides evaluating the scope of introduction of different models of rent payments.
On the other hand, the tenants of residential properties will be supported under the ban on evictions, in the most serious circumstances, including the incidents of domestic abuse or fraud. Additionally, the landlords will continue to follow the six-month notice periods framework before asking the tenants to leave until the end of May this year.
The beneficiaries
The decision to extend the ban on commercial evictions has been primarily taken to support business owners who were mandatorily required to shut their entire operations during the recently imposed lockdown and the tier-system from October to December 2020. The government has noted that some of the businesses have had to cease operations completely during the lockdown.
The worst-hit businesses, including bars, restaurants, regional dine-in outlets, pubs and other eateries, operating on rented properties are highly likely to benefit from the eviction ban extension as they prepare to resume their commercial activities from May this year.
Meanwhile, the residential tenants can get away with the difficulties of eviction as there will be adequate time to search for alternative accommodation. The residential tenants belonging to private as well as the social sector may stay in their homes without immediately worrying about the next support or accommodation as the people who were momentarily removed from the jobs will be getting back to their respective workplaces as employers reopen under the planned exit roadmap.
The decision to extend the eviction ban on residential accommodation has been taken with due care as according to the Labour Force Survey of April 2020, approximately 36 per cent of the retail workers and 49 per cent of the people working with the hospitality sector are residing at rented habitations. As per the government, the new measures and eviction ban is likely to protect jobs as many more renters will be returning to work with the reopening of workplaces and businesses.
During the still-running course of Covid-19 pandemic, the government has set aside a massive sum, £280 billion, to bolster the prospects of businesses. The package, designated to support the operations of the businesses and the people employed by them, has aptly reinforced business practices across the UK.
geography of the UK.
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