The Coronavirus Act, what is it and how does it apply to tenants
The Coronavirus Act 2020 is an Act of the Parliament of the United Kingdom that grants the government emergency powers to handle the COVID-19 pandemic. The Act allows the government the discretionary power to limit or suspend public gatherings, to detain individuals suspected to be infected by COVID-19, and to intervene or relax regulations in a range of sectors to limit transmission of the disease, ease the burden on public health services, and assist healthcare workers and the economically affected. Areas covered by the Act include the National Health Service, social care, schools, police, Border Force, local councils, funerals and courts. The Act was introduced to Parliament on 19 March 2020, and passed the House of Commons without a vote on 23 March, and the House of Lords on 25 March. The Act subsequently received royal assent on 25 March 2020.
Politicians from parties including the Conservatives, Labour, and the Liberal Democrats demanded closer parliamentary scrutiny of the legislation while it was debated in Parliament. Advocacy groups such as Liberty and Disability Rights UK have likewise called for closer examination of the Act and raised concerns over its effects on human rights during and after the pandemic.
Time limit, review and renewal
The Act has a two-year time limit that may be shortened or lengthened by six months at ministerial discretion.[9] Following a government amendment, the Act is additionally subject to parliamentary renewal every six months;[10] it would originally have been returned to Parliament for debate one year after its enactment.[9]
Section 88 of the Act enables national authorities to suspend (and later revive, if appropriate) many of the Act's provisions, and section 97 requires the Secretary of State to publish, every two months, a report on the status of the non-devolved provisions. On 7 May, the Department of Health & Social Care published a table showing the status of each provision, including those not at that time in force.[11] This was followed on 29 May by the first two-monthly report, which gives for provisions not yet in force a brief explanation of the reason, and for those in force an outline of the extent to which the provision has been used.[12]
Business Tenancies
Landlords cannot evict business tenants on the grounds of non-payment of rent whilst the Coronavirus emergency continues. This currently applies from 26 March to 30 June 2020 ("the relevant period") unless subsequently extended.
Forfeiture for non-payment of rent
During the relevant period the landlord cannot enforce a right of re-entry for non-payment of rent (the definition of rent includes service charge and insurance premium), whether by peaceable re-entry or in court proceedings. To protect the landlord's position, the right of re-entry can only be waived during the relevant period by an express waiver in writing. These provisions do not apply to any other type of breach of covenant.
Where forfeiture proceedings for non-payment of rent are already on foot, the court cannot make an order for possession which expires before the end of the relevant period. In some cases the court will have made an order for possession which only takes effect if the tenant fails to do something (e.g. pay the arrears or instalments) by a certain date. In the High Court, if the tenant applies to vary the order the court must ensure that the tenant does not have to give possession before the end of the relevant period. In the County Court, the period during which the tenant has to pay cannot be before the last day of the relevant period (as in force at the date of the order). For existing orders, the period within which the tenant must pay the arrears is automatically extended to the end of the relevant period.