Page 20 - Yearbook 2020
P. 20
LANDLORD
& TENANT
In conversation with Melanie Greer-Walker & Jonathan Warner-Reed
Melanie Greer-Walker, Partner, told us “new legislation in relation to COVID-19 has had the biggest impact in my sector for many reasons, but speci cally the protection for tenants from forfeiture for non-payment of rent.”
For tenants suffering the effects of COVID restrictions and lockdowns and the subsequent loss of income, particularly in the retail, leisure and of ce sectors, it was welcome news and a necessity in order to protect the market from large- scale evictions. However, it was potentially very bad news for landlords who must still nance lending, insure and maintain buildings and depend on rental income to do so.
Melanie warns that “if commercial tenants are protected until 2021 or beyond, incentive to make payments – whether or not they are able to – will dwindle. For public and private sector landlords, commercial property has been a source of in ation-beating investment income in recent years and this is now at great risk, both from immediate non-payment issues and also the down-valuing of the sector as a whole. This could heavily impact the capital values of property and
19
result in a direct hit to balance sheets and lending gearing ratios. This risks ultimately driving investment away from certain sectors of the commercial property market into ‘safer’ areas.”
Property Litigator, Jonathan Warner-Reed, adds “The position is unlikely to be corrected for many years to come. The restrictions need to be gradually amended to address the imbalance.”
Melanie concludes that “we can only wait and see what happens when the pandemic is perceived to be over, whether con dence will return to the sector and if people will return to working in of ces and going to high street shops in the same manner. I am of the opinion that the commercial property sector will emerge from the pandemic in a very different place to 2019. It has already affected market sentiment and trust in the sector, which had been a solid capital investment and income play in the last few decades.”
