We recognise that businesses in Tower Hamlets are facing a unique challenge due to the coronavirus pandemic. To support those businesses for whom we are the landlord, we have launched a rent deferral scheme.
It is aimed at allowing businesses to manage their cash flow, relieving stress during this unprecedented period and making it easier to meet immediate financial commitments such as paying staff and suppliers and meeting running costs.
The scheme will enable tenants to delay the payment of their rent for three calendar months from 1 April 2020.
The expectation is that the deferred rent payments should be paid in full by 31 March 2021, however we understand that there may be some businesses that require an extension due to hardship and in such circumstances, we will give consideration to special arrangements.
Businesses will be eligible to apply for a rent deferral if they meet one or more of the following criteria:
- The premises have been closed in accordance with the government guidance on closing certain businesses and venues.
- The premises have been closed by the council due to the coronavirus pandemic.
- The business cannot trade.
- The business has been granted business rates relief as part of the government relief scheme.
- The business is considered micro or SME in accordance with current government guidance.
If you have questions about the scheme, please email rentdefermentscheme@towerhamlets.gov.uk
The government has also announced new protections for commercial tenants, other than those for whom the council is the landlord, that are not able to pay their rent during the next three months, as a result of COVID-19.
Network Rail has announced it is cancelling all first quarter (25 March to 23 June 2020) rent payments due from tenants in their commercial estate portfolio, providing significant relief for small businesses.
It has been announced that small and medium businesses on TfL's estate, which make up 86 per cent of tenants, are to get 100 per cent rent relief. This will start from start from 25 March for the next three months.