No rent holidays for council business tenants

By Elgan Hearn, Local Democracy Reporter

Giving tenants of Powys County Council’s (PCC) business units a rent holiday would ease the financial pressure on them, according to a councillor.

But, PCC argue that it would be unfair on the private sector landlords.

Under the questions-at-anytime protocol, leader of the Liberal Democrat/Green group, Cllr James Gibson-Watt, said other Welsh local authorities are giving tenants rent holidays.

Cllr Gibson-Watt said: “Would the Cabinet now consider providing rent holidays to ease the financial pressure on its business tenants?”

Portfolio holder for Education and Property, Cllr 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.”

Cllr Davies said that PCC had asked other councils and the Welsh Government, how were they dealing with commercial tenants thought the pandemic.

He explained that eight other councils and the Welsh Government were using a rental deferment package, which needed full repayment in the same financial year. He said that PCC had chosen this model rather than giving tenants a rent-free period.

Cllr 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. He added that this had been advertised, but at the time no tenants applied for deferment.

Cllr 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 current protection has now been extended from June 30 to December 31 and Cllr Davies said that it could be extended again in 2021.

“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,” he said.

“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.