The Renters' Rights Act 2025: Transforming England’s private rental sector
The Renters’ Rights Act 2025 reshapes England’s private rental sector, strengthening tenant rights and raising property standards.
Read More
A recent court case against a national cinema chain has demonstrated that businesses closed during the pandemic must still pay their rent arrears.
Dispute Resolution|07 October 2021
Insight
The recent decision in the London Trocadero LLP -v- Picture House Cinemas Limited and others [2021] EWCH 5291 (Ch) case has provided further comfort to commercial landlords in that rent accrued during COVID is recoverable via the court route, irrespective of the moratorium on other action and the pending binding arbitration scheme planned by the Government. This case brings the third decision from the High Court on these matters.
The interesting point in this case is that the court was not prepared to adjourn the summary judgment application until after the legislation relating to the arbitration is in place. This means that it is unlikely that commercial tenants will be able to delay matters until the scheme is in place in the hope that some arrears will be written off.
In the claim for £2.9m in rent arrears, the defendants argued that there were implied rent suspension terms when the premises could not be used for its intended purpose (in this case a cinema) or where attendance levels had dropped to an unanticipated level. In the absence of express terms in the lease, the court did not agree with this point.
An argument of partial failure of consideration had already been rejected in an earlier judgment in BNY Mellon -v- Cine-UK Ltd and others [2021] EWCH 1013 QB (although this is subject to appeal), however, in the Trocadero case, the defendants tried to argue a total failure of consideration. The court rejected this point on the basis that the tenant had retained possession of the premises, thereby receiving some benefit and that the permitted use restrictions were not fundamental to the basis of the lease.
Finally, the defendants issued a counterclaim of £621k for insurance payments, which they claimed should be off-set against any arrears. The court was persuaded that a right of set-off could potentially exist due to the precise wording of the lease, however, this is to be decided at a later date at trial.
It seems that the scales are presently weighing in favour of commercial landlords despite the restrictions, however, it remains to be seen whether this will change as further cases pass through the court system on these issues.
Contact Us
For more advice and support with resolving disputes with commercial tenants, call 01332 226105 or fill in the form below.
Related Services
Knowledge
The Renters’ Rights Act 2025 reshapes England’s private rental sector, strengthening tenant rights and raising property standards.
Read MorePractical checklist to help landlords and property managers comply with the Renters’ Rights Act 2025 and new tenancy regulations.
Read moreLearn what to do when a commercial lease ends, including renewal rights, risks of staying without a lease, and avoiding disputes.
Read MoreKey considerations for tenants before signing a commercial lease, including use, repairs, rent, break clauses, and security of tenure.
Read MoreAn overview of the searches that should be considered when carrying out commercial property transactions.
Read MoreThe new Renter’s Rights Bill is set to be the biggest shake up that the private rented sector has received in a long time.
Read MoreRecent High Court ruling bars Trustee in Bankruptcy from claiming overage entitlement due to non-participation in joint claimants' expert determination.
Read MoreHigh Court tackles party's non-compliance with witness statement rules in Business/Property Courts & other specialist lists.
Read MoreThe Energy Performance Certificate (EPC) regime is set to tighten from 2023, bringing a significant and consequential change to owners of commercial properties.
Read MoreNew legislation is now in force to provide welcome relief for landlords, who have been prevented from taking action for a significant period of time.
Read MoreA useful case analysis and the precedents this is likely to set for future matters following a recent Court of Appeal decision regarding a corporate dispute.
Read MoreThe Government has announced that the notice periods required under a section 8 notice and section 21 notice are to be reduced back to the pre COVID-19 periods.
Read MoreScroll to next section
Scroll back to the top
On Monday 29 September, Flint Bishop successfully completed the acquisition of the entire business of Lupton Fawcett LLP. You have been forwarded to the page most relevant to your visit.
Please feel free to explore our website and learn more about our legal services and professionals, including those who have recently joined us from Lupton Fawcett.