Five Trade Associations have this morning issued a call for the Government to introduce the Property Bounceback Grant. Whilst costing an estimated £1.75 bln up front, it could save 375,000 jobs and generate tax revenues of up to £7 bln from the economic trickle down activity.
The underlying suggestion is that the Government support covers 50% of unpaid rent from March to September across the retail, hospitality and leisure sectors for six months.
This would be a very welcome lifeline to both tenants and landlords given the devastation in the commercial industry over the past two quarters and the rapidly approaching September Quarter date.
The grants would be conditional upon the landlord and tenants agreeing to account for the remaining 50% of the rent and the service charges.
The British Property Federation, British Retail Consortium, Revo, ukactive and UK Hospitality trade bodies represent both landlords and tenants, who have for the past few months been at loggerheads over missed rental payments. The situation escalated to the point that the Government declared that a landlord could not, up till the end of September, evict or take a tenant to court over unpaid rent. This comes on the back of thousands of commercial properties being forcibly closed on the back of the Covid pandemic.
Whilst lockdown restrictions are slowing being lifted, this would be a hugely welcomed lifeline to those worst hit.
Lets hope that government listen to this well thought out plan and implement asap.
Photo by Jonas Kohl on Unsplash
