Policy background
COVID-19 and the associated closure measures have had a significant impact on the economy, particularly on the income of the hospitality, leisure and retail sectors. As a result of restrictions on businesses during the pandemic and the temporary protections put in place to help businesses manage rents during coronavirus related restrictions, a significant amount of rent debt has built up relating to commercial tenancies.
	The Government worked with business leaders to publish a voluntary Code of Practice in June 2020 that encouraged both landlords and tenants to work together to resolve unpaid rent, and updated the Code in November 2020 and April 2021.
	Some tenants and landlords have utilised the voluntary Code of Practice and whilst there is indication that, overall, rent collection is increasing, it remains below average levels, especially in certain sectors.
	This legislation supports landlords and tenants, who cannot otherwise agree, in resolving disputes relating to the rent owed, to facilitate a return to normal market operation.