The Covid-19 outbreak and the unprecedented requirement for social distancing continues to present never-before seen contractual issues and logistical problems in the property market. Legal practitioners are having to adapt working practices and enhance critical thinking to address scenarios which have otherwise been approached in a standard and uniform way for years.

Our October 2020 summary of the latest developments in Property law and practice, following the impact of Covid-19, is as follows:

The “relevant period” under section 82 of the Coronavirus Act 2020 has again been extended. This is the period during which a landlord is restricted from forfeiting a commercial lease for non-payment of rent, whether by re-entry or court proceedings. Under regulations introduced separately in England and Wales, the relevant period is extended to 31 December 2020, thereby extending protection against unpaid rent beyond the 25 December quarter day. As tenants undoubtedly know, the restriction on forfeiture for unpaid rent does not stop the rent from being payable, and nor does it stop interest accruing on unpaid rent.

In line with this extension, The Commercial Rent Arrears Recovery Procedure (CRAR) has also extended its restrictions until 31 December 2020, to include set guidelines on how many days unpaid rent must be due, before a Landlord can exercise its rights under CRAR. The minimum amount of net unpaid rent must equal to 276 days’ rent (where the notice of enforcement is given on or before 24 December 2020) and 366 days’ rent (where the notice of enforcement is given on or after 25 December 2020).

The government has published guidance on the Community Infrastructure Levy (Coronavirus) (Amendment) (England) Regulations 2020 (SI 2020/781) which were introduced this summer. These regulations insert a new regulation 72A into the Community Infrastructure Levy Regulations 2010 to provide charging authorities with a discretion to defer payment of CIL for persons with an annual turnover not exceeding £45,000,000. Authorities also have a discretion to temporarily disapply late payment interest and surcharge payments and to credit interest already charged where they consider it appropriate to do so. It seems very likely that the huge impact of Covid on the construction industry will be taken into account in most cases being considered. The Guidance encourages CIL charging authorities to consider making use of their discretion in considering what, if any, enforcement action is appropriate in respect of unpaid CIL liabilities.

The Corporate Insolvency and Governance Act 2020, introduced temporary restrictions on the use of statutory demands and winding up proceedings during the Covid-19 crisis. These temporary restrictions have been extended from 30 September 2020 to now apply until 31 December 2020. More information can be found here: https://www.legislation.gov.uk/uksi/2020/1031/contents/made.

The Land Registry has published a new Practice Guide: “Coronavirus (COVID-19): useful information for conveyancers” (LRPG 80). The new Practice Guide has essentially confirmed the use of e-signatures for deeds (such as leases) and practitioners making use of the Mercury Principles (exchange and completion on the basis of PDF copies ahead of originals being received).