The Act provides that a “fair proportion” of rent and outgoings will cease to be payable when there is an “epidemic”, and the tenant is “unable to gain access to all or any part of the leased premises …… but provides limited guidance on how the reduction will be determined. There is no guidance from the Courts as to how to assess what is fair, as any disputes about clause 27.5 have required the parties to submit the dispute to arbitration, which is a private dispute resolution process.
The purpose of these Guidelines is to assist tenants, landlords and arbitrators in resolving disputes regarding “fair proportion” rent reductions applicable to periods of lockdown.