On 16 June 2021 the government announced that it intends to introduce a mandatory, “binding arbitration process” for the resolution of rent arrears disputes between landlords and tenants of commercial premises. The new rules will apparently be established to ringfence outstanding unpaid rent that has built up during the pandemic. They will require landlords to make allowances in respect of the ringfenced rent arrears and share the financial impact with their tenants to ensure that Covid-related rent debts will be settled with finality.
What is arbitration? What will be the scope of a binding arbitration process? Will it involve re-writing the lease and changing pre-existing rights and obligations? This article explores what a compulsory arbitration process might look like and the difficulties that are likely to arise in practice.
To read the full article, please follow this link.