A Cumbrian law firm has spoken about a new law that will resolve commercial rent debts accrued as a result of the pandemic.

Carly Davies, debt control manager at Cartmell Shepherd Solicitors, which has offices in Carlisle, Brampton and Haltwhistle, explained: "The Commercial Rent (Coronavirus) Act 2022 provides a legally binding arbitration process for eligible commercial landlords and tenants who have not already reached an agreement.  

"It’s designed to resolve disputes about certain pandemic-related rent debt and help the market return to normal as quickly as possible. 

"The law applies to commercial rent debts of businesses including pubs, gyms and restaurants which were mandated to close, in full or in part, from March 2020 until the date restrictions ended for their sector. 

"Debts accrued at other times will not be included."

Business minister Paul Scully said: “This new law will give commercial tenants and landlords the ability to draw a line under the uncertainty caused by the pandemic so they can plan ahead and return to normality. 

“Landlords and tenants should keep working together to reach their own agreements where possible using our Code of Practice to help them, and we’ve made arbitration available as a last resort.

"Tenants who can repay their rent debts in full, should do so, and when they cannot, landlords should try to share the burden, so we can all move on. 

“The government encourages commercial landlords and tenants to negotiate their own agreement where possible, so that an arrangement to resolve debt is mutually agreed, instead of resorting to the arbitration process.”