Council Business Tenants not given a rent holiday during pandemic
Powys County Council will not be providing a rent holiday for its business tenants – because it would be unfair on private sector landlords.
Under the questions at any time protocol, leader of the Liberal Democrat/Green group, Councillor James Gibson-Watt brought up the issue, as other local authorities in Wales are giving tenants rent holidays.
He said it would ease financial pressure on the business tenants.
But, the county council has decided against this as it would not be fair on the private sector landlords.
Portfolio holder for Education and Property, Councillor Phyl Davies, said: “The council has not offered rent holidays for its tenants during the coronavirus pandemic, although I am aware that other authorities in Wales have done so.”
Councillor Davies said eight other councils and the Welsh Government are using a rental deferment package, which needed full repayment in the same financial year.
He said that Powys County Council had chosen this model rather than giving tenants a rent free period.
Councillor Davies said: “Up to three months’ rental deferment rather than a rent holiday has been available.”
Originally this would have been up to the end of June with the repayment expected by March 31, 2021. But it has now been extended to December 31 and it could be extended again in 2021
Councillor Davies said that this had been advertised but at the time no tenants applied for deferment.
Councillor Davies added: “A full rent holiday would have meant that we would have
lost one quarter of our income from our commercial estate.
“It was felt such a decision would also potentially be inequitable to private sector tenants whose landlords could not afford to grant them such favourable waivers of lease obligations.
“The council may need to work out appropriate repayment plans with tenants who have struggled to meet their liabilities during the pandemic, and these plans may now extend into the next financial year.
“We will of course keep a close watch on this very important issue and review as necessarily should the need arise.”
PCC has a wide range of business and industrial premises throughout Powys, from 250 square foot starter workshops to large scale industrial units.
