On 9 November 2021, the Government announced new legislation and a Code of Practice to resolve commercial rent arrears that accrued during the pandemic. The new legislation is intended to take effect once the current moratorium, which protects commercial tenants from eviction, ends on 25 March 2022.

Current estimates indicate that the total commercial rent arrears between the March and December quarters in 2020 reached £4.2bn. With the current moratorium on forfeiture due to end on 30 June 2021, commercial landlords are having to look at their options very seriously.

It is possible to terminate an assured shorthold tenancy during the term by service of a notice under Section 8 of the Housing Act 1988 (“HA 1988”). This can include a number of potential grounds for possession which are split into “mandatory grounds” or “discretionary grounds”.

It is possible to terminate an assured shorthold tenancy after the term (or under a break clause in the lease) by serving a notice under Section 21 of the Housing Act 1988. However, it is important to ensure that the additional requirements, prior to service of the notice, have been complied with fully otherwise the notice will be invalid.