NEW RENT ARREARS RECOVERY REGULATIONS OFFER REASSURANCE AND SUPPORT TO BOTH LANDLORDS AND TENANTS, SAY HARRIS LAMB

Property management specialists at Harris Lamb have said that changes in the regulations surrounding the recovery of commercial rent arrears, which come into effect at the beginning of next month, will offer support to tenants and landlords alike.

As of May 1st 2026, changes to the Commercial Rent Arrears Recovery (CRAR) regulations will see the period given to tenants in arrears from receipt of the Notice of Enforcement increase from seven days to 14 days, a new fee structure implemented – the first increase in enforcement fees in 12 years – and a lower enforcement agent visit charge to tenants.

Shirley Greenlees, Director, said: There have been various changes to legislation affecting both commercial landlords and tenants in recent months, and the latest, which come into force next week, aims to provide commercial tenants with ample warning of due course when it comes to the recovery of rent arrears.

The legislation consists of amendments to The Taking Control Of Goods Regulations 2026.

“According to these amendments to the Commercial Rent Arrears Recovery regulations, tenants have more time to address arrears with less fiscal impact on their businesses. This aim is to create fairer, better relationships between landlords, tenants, and property managers,” she said.

Shirley said that while the first amendment to the CRAR regulations, that of providing increased notice period to tenants before an enforcement agent came visit to recover outstanding rent was straight forward, the second and third seemed to counter each other.

“Amendment two decrees lower charges for tenants when visited by an enforcement officer should they not pay within the new 14-day period. Amendment three will see a new fee structure introduced, with fixed fees rising by five per cent.

“Despite this higher fixed fee, tenants will pay less in overall fees because the sum will be based on the amount of rent outstanding at the time of their visit. The threshold at which they start paying 7.5% of the outstanding rent will increase from £1,500 to £1,900, resulting in lower repayments than those accrued further to enforcement visits previously,” she explained.

“These fundamental changes will provide both tenants and landlords with reassurance that there is a fair, documented process in relation to rent arrears recovery, resulting in stronger relationships moving forward,” she added.