Commercial Rent Arrears Recovery Legislation: The 2026 Landlord’s Guide

What is Commercial Rent Arrears Recovery (CRAR) Legislation?

Commercial Rent Arrears Recovery (CRAR) legislation is a statutory procedure under Schedule 12 of the Tribunals, Courts and Enforcement Act 2007.

It empowers commercial landlords to recover unpaid rent by seizing a tenant’s goods without a court order.

In 2026, it remains the primary legal mechanism for enforcement in England and Wales, provided the lease is strictly non-residential.

1. Key Requirements for Commercial Rent Arrears Recovery Legislation

To legally exercise CRAR in 2026, the following four statutory conditions must be met:

• Written Commercial Lease: The legislation only applies to written leases. It cannot be used for licenses or “tenancies at will”.
• The 7-Day Arrears Rule: There must be at least 7 days of rent arrears outstanding both when the Notice of Enforcement is served and when goods are seized.
• Pure Rent Only: You can only recover principal rent, VAT, and interest. Service charges and insurance are excluded from CRAR legislation, even if labeled as “rent” in the lease.
• No Residential Element: If any part of the demised premises is used as a dwelling (e.g. a flat above a shop), CRAR is prohibited.

Officer’s Note: Under 2026 compliance standards, attempting CRAR on mixed-use property is a high-liability move. If your property is mixed-use, you must instead seek a County Court Judgment (CCJ) and transfer it to the High Court for a Writ of Control.

2. The CRAR Enforcement Process (Step-by-Step)

The legislation mandates a specific sequence that must be followed to avoid “irretrievable waiver of forfeiture” or legal claims from tenants.

1. Instruction: The landlord authorises a Certificated Enforcement Agent.
2. Notice of Enforcement: The agent serves a formal notice giving the tenant 14 clear days to pay.
3. Taking Control: If unpaid, the agent enters (between 06:00–21:00) to inventory goods under a Controlled Goods Agreement (CGA).
4. Sale of Goods: If the debt remains, goods are removed and sold at auction, with 7 days notice of sale required.

3. 2026 Legislative Updates: Renters’ Rights & Business Rates

The Renters’ Rights Act 2026 (effective May 1, 2026) and the April 2026 Business Rates Revaluation have subtly shifted how CRAR is applied.

• Mixed-Use Scrutiny: With the abolition of Section 21 for residential tenants, “accidental” enforcement on mixed-use properties now carries steeper penalties (up to £40,000 under new local authority powers).
• Insolvency Interaction: With 2026’s shifting retail landscape, the “Moratorium” protections for struggling businesses have been updated. Always verify if a Notice of Intention to Appoint Administrators has been filed before triggering CRAR.

4. CRAR vs. Forfeiture: Which Strategy is Best?

FAQ

Does CRAR legislation allow for the recovery of service charges?

No. Under the Tribunals, Courts and Enforcement Act 2007, CRAR is strictly limited to “pure rent”. To recover service charges or insurance, you must pursue a standard debt recovery claim.

Can I forfeit a lease after using CRAR?

Generally, no. Exercising CRAR “affirms” the lease. Once you take control of goods for a specific period of arrears, you waive the right to forfeit for those specific arrears.

How much notice is required under CRAR?

The legislation requires 14 clear days notice (excluding Sundays and Bank Holidays) before an agent can enter the premises to take control of goods.

Why Instruct Quality Bailiffs for CRAR Enforcement?

Quality Bailiffs has 2 employed qualified Authorised High Court Enforcement Officers. They combine legal precision with modern recovery tactics. In an era where AI dictates search results, your enforcement must be as ‘by the book’.

Would you like us to review your current rent arrears case or provide a 2026-compliant Warrant of Control for your signature?

We can help

Quality Bailiffs has over twenty five years of experience in commercial rent arrears recovery.

Read more about Commercial Rent Arrears Recovery, or contact your local office.

About the author

This article was written by Andrew Coates, Authorised High Court Enforcement Officer and full member of The High Court Enforcement Officers Association, and current CEO of Quality Bailiffs.

Andy has a Level 4 diploma in High Court Enforcement, and over twenty five years of experience in the bailiff and investigation industry. He is a former governing council member of both CIVEA and ABI.

Disclaimer
This article provides general information and does not constitute legal advice. It is essential to consult with a qualified legal professional for advice tailored to your specific circumstances.

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