High street code of practice in development

Ministers have announced they are working on a new code of practice for high street traders, as some shops prepare to open for the first time since the lockdown began.

According to a government statement, the code, which is still in development, will provide business owners and landlords with clarity and reassurance over rent payments.

A working group has been established to develop a code which encourages fair and transparent discussions between landlords and tenants over rental payments during the coronavirus pandemic and guidance on rent arrear payments and treatment of sub-letter and suppliers.

The news comes as some shops are preparing to open next month. From Monday (1 June), car showrooms and open air markets will be able to resume, while ‘non-essential’ shops will be able to open their doors from 15 June onwards.

‘We are developing a new code of practice, working alongside the industry’s leading bodies, to provide that clarity and reassurance to both commercial tenants and their landlords in recognition of the challenges they are facing as a result of coronavirus,’ said communities secretary, Robert Jenrick.

‘We expect all parties to come to the table so our high streets and town centres are in the best possible position to come back from these challenges.’

The chief executive of the British Retail Consortium, Helen Dickinson, added: ‘The coronavirus pandemic has accelerated longer-term trends in retail property. Rent demands are increasingly out of kilter with current property values and many retailers are being forced to pay rent on closed stores.

‘We welcome the government’s code as a positive first step and are working constructively with it and landlords to ensure that otherwise viable businesses are not forced into administration. However, all sides must be prepared to do more if necessary, given that the commercial lettings market is in need of wider reform.’

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