Investors in Enforcement Agents 
 
We have received the following announcement from The Ministry of Justice 
 
I am writing to let you know about secondary legislation that the Government laid on Friday 19 June, which will enter into force on 24 June. The Taking Control of Goods and Certification of Enforcement Agents (Amendment) (No. 2) (Coronavirus) Regulations 2020 can be viewed here and follows on from the Taking Control of Goods and Certification of Enforcement Agents (Amendment) (Coronavirus) Regulations 2020, which came into force on 25 April. 
The regulations amend the Taking Control of Goods (TCG) Regulations 2013 and the Certification of Enforcement Agents (CGA) Regulations 2014 as follows: 
 
An amendment to Regulation 2 of the Taking Control of Goods (TCG) Regulations 2013 prescribes 23 August 2020 as the date on which: 
 
a. restrictions on bailiffs taking control of goods on the highway or at residential premises under Regulations 10(1)(d) and 23(2)(c) of the TCG Regulations 2013 expire; and 
b. the provisions for automatic extension of the period of validity of a notice of enforcement under regulations 9(5) and 9(6) of the TCG Regulations 2013 expire. 
 
Amendments to Regulations 2 and 7 of the Certification of Enforcement Agents (CEA) Regulations 2013 prescribe 23 August 2020 as the date on which the provisions for automatic extension of enforcement agents’ certificates under Regulation 7 of the CEA Regulations 2014 expire. 
 
An amendment to Regulation 52 of the Taking Control of Goods Regulations (TCG) 2013 extends protection for commercial tenants from the use of the Commercial Rent Arrears Recovery (CRAR) process during the Covid-19 period by increasing the amount of rent that must be due from an amount equal to 90 days’ rent to 189 days’. This measure will remain in force while protections from forfeiture for business tenancies are in place under s. 82 of the Coronavirus Act 2020, which is expected to be until 30 September. 
 
The previous Statutory Instrument tied the restrictions on taking control of goods by enforcement agents at residential properties and on the highway to regulation 6(1) of the English Health Protection Regulations and regulation 8(1) of the Welsh Health Protection Regulations. Due to ongoing amendment to those regulations, it was felt appropriate to amend the duration of the restrictions on visits to the 23 August, being the same period as restrictions on possession proceedings. The duration of the provisions for automatic extension of the validity of notices of enforcement and enforcement agent certificates is likewise amended to the 23 August. Because the restrictions relate to public health concerns, this may be subject to further change. 
 
The Government is also increasing the minimum amount of rent that must be due before CRAR may be used, to provide businesses with additional protection and flexibility in managing their finances. This is in line with measures already taken by the Government to protect business tenancies from forfeiture and to encourage creditors to show forbearance to businesses affected by coronavirus. Under the CRAR changes landlords do not lose their rights to unpaid rent: their ability to use CRAR is only delayed. Those tenants who can pay will be encouraged to do so. 
Tagged as: Coronavirus
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