Last year residential landlords saw the introduction of the Renters’ Rights Bill which is set to bring the abolition of Section 21 evictions and the end of fixed term tenancies. With increases in stamp duty and a reduction in tax-free allowance for Capital Gains Tax (CGT) rippling through the sector many have made the choice to exit and invest in other markets.
While the marketplace for commercial landlords may have been arguably more stable, the cost-of-living crisis impacted many companies and a rise of company insolvencies put commercial landlords at risk of losing tenants who had historically been good renters – resulting in landlords themselves struggling with rising debt.
According to Statista, England and Wales saw 23,880 company insolvencies in 2024 – matching similar levels seen in the 2008 recession. A study from workspace company infinitSpace also found that 1 in 7 commercial landlords believed their buildings were at risk of closing by 2029 due to affordability concerns.
With the current cost of living pressures still prevalent, we expect landlords to face similar challenges throughout the rest of this year as the commercial market continues its recovery.
What Can Commercial Landlords Do?
It is vital that landlords maximise their chances for recovery. A useful tool available is the Commercial Rent Arrears Recovery (CRAR) process. It allows commercial landlords to instruct an enforcement agent to recover outstanding rent without the need to go to court and ensures swift action can be taken. This opportunity for early engagement reduces the cost to recover any outstanding rent and enables a landlord to get a clearer picture of their tenant’s financial situation.
The cost for this service is only £75.00 + VAT
If recovery is not possible, the information gathered from these attendances is invaluable for determining how best to manage the relationship with the tenant and ensure the property is protected. In many cases, this can then lead to our office being instructed to peaceably re-enter or forfeit the lease and return possession back to the landlord.
If the property in question is mixed use or the occupants are preventing peaceable re-entry – commercial landlords may need to involve the court and obtain a possession order.
What You Can/Can’t Do with Commercial Rent Arrears Recovery (CRAR)
Protecting Investments
As financial pressures persist in 2025 landlords must remain vigilant, adaptable, and proactive in protecting their investments while seeking expert guidance when necessary. By leveraging available tools such as CRAR and staying informed, commercial landlords can better weather the uncertainties of the current market and position themselves for long-term resilience.
Eric Roe, Managing Director at Wilson & Roe, said: “We have seen well-known commercial landlords feel the pinch as they face significant challenges following a downturn in the economy and changes in customers buying habits. Providing an efficient and quick debt recovery solution has been a game changer for many, but speed of instruction is needed to improve the chances of success.”
Wilson & Roe High Court Enforcement can help you recover the payments you are owed. To find out more or to instruct us telephone 0161 925 1800 or email property@wilsonandroe.com
If you have any other type of Judgment or are unsure how to move forward with your application, please contact us and we will be happy to help.
You can speak to us by
telephone on 0161 925 1800,
by email at wr@wilsonandroe.com
or fill in our contact form here
