Abolition of Distress?

This archaic method of rent recovery could soon be a thing of the past. The Tribunals Courts and Enforcement Act 2007 provides for the introduction of a new regime called Commercial Rent Arrears Recovery ("CRAR"). The new regime would implement a new system which would require any bailiff or enforcement agency to provide the debtor with seven days notice before the seizure of any goods can take place. In addition to the requirement of a seven day notice, the new regime will also include the restriction of the right of seizure to actual rent only, a minimum level of arrears, and restricting the means of entry to the premises. This removes the element of surprise and will almost certainly result in debtors removing from the property any goods of value which may be seized.

This new regime is still not in force and the procedure for claiming rent under distress remains unaltered. However a new consultation on this issue ended in July of this year which is seen to have provided new impetus to the new CRAR regime.

Further information on this new regime will follow upon an outcome to the consultation being reached.

This article is for general guidance only. It provides useful information in a concise form. Action should not be taken without obtaining specific legal advice.