COVID-19: Coronavirus Act 2020: property litigation implications | Practical Law

COVID-19: Coronavirus Act 2020: property litigation implications | Practical Law

The Coronavirus Act 2020 (CVA 2020) received Royal Assent on 25 March 2020.

COVID-19: Coronavirus Act 2020: property litigation implications

Practical Law UK Legal Update w-024-6681 (Approx. 3 pages)

COVID-19: Coronavirus Act 2020: property litigation implications

Published on 26 Mar 2020England, Wales
The Coronavirus Act 2020 (CVA 2020) received Royal Assent on 25 March 2020.
The CVA 2020 is an emergency measure in response to the spread of the 2019 novel coronavirus disease (COVID-19). Of interest to property litigation practitioners are the provisions that restrict the recovery of possession of both residential and commercial premises. The provisions apply to England and Wales (although some of these matters are devolved to the Welsh authorities).
The Coronavirus Act 2020 (CVA 2020) received Royal Assent on 25 March 2020.
With effect from 26 March 2020, the CVA 2020:
  • Amends the Rent Act 1977, Protection from Eviction Act 1977, Housing Act 1985, Housing Act 1988 (HA 1988) and Housing Act 1996. The effect of the amendments is that the relevant statutory notice given as a precursor to possession proceedings for most residential tenancies is increased to three months. This includes section 8 and section 21 notices under the HA 1988. This period can be extended up to six months.
  • Provides that in relation to a business tenancy no right of re-entry or forfeiture for non-payment of rent may be enforced in any way until 30 June 2020 (or such later date as the Secretary of State or Welsh Ministers may specify) ("Relevant Period").
    During the Relevant Period, no conduct by or on behalf of a landlord is to be regarded as waiving a right of re-entry or forfeiture, unless the landlord gives an express waiver in writing.
    For existing litigation based on forfeiture for non-payment of rent, the tenant cannot be evicted before the end of the Relevant Period.
    Failure to pay the rent during the Relevant Period will be disregarded for the purposes of section 30(1)(b) of the Landlord and Tenant Act 1954 (persistent delay in paying rent).
Practical Law Property Litigation will publish a practice note that considers in detail these restrictions on the recovery of possession of residential and commercial premises.