The Commercial Rent Arrears Recovery (CRAR) regime is set to undergo important reform from 1 May 2026, following the introduction of the Taking Control of Goods (Miscellaneous Amendments) Regulations 2026. These changes will have practical implications for landlords, enforcement agents, and commercial tenants alike, particularly in relation to notice periods and enforcement costs.

This article outlines the key updates and considers their likely impact.

1. Extension of the Notice of Enforcement Period

One of the most significant amendments is the extension of the statutory Notice of Enforcement period.

Under the current framework, enforcement agents are required to give a minimum of 7 clear days’ notice before attending the premises. From 1 May 2026, this period will increase to 14 clear days, excluding Sundays and Bank Holidays.

Practical impact:

• Landlords will experience a longer delay before enforcement action can commence.
• Tenants will benefit from additional time to respond, negotiate, or settle arrears.
• Enforcement timelines overall will be extended, potentially affecting cash flow for landlords relying on CRAR as a recovery mechanism.

This change reflects a broader policy trend towards affording tenants greater procedural protection.

2. Revision of the Minimum Threshold for Percentage Fees

The fee structure applicable to enforcement agents is also being revised.

From May 2026:

• The minimum threshold for percentage-based fees will increase from £1,500 to £1,900.
• Where arrears are £1,900 or below, a fixed fee of £247.00 will apply.
• Where arrears exceed £1,900, fees will be calculated as:

  £247.00 + 7.5% of the sum above £1,900

Practical impact:

• For lower-value arrears, enforcement costs become more predictable due to the fixed fee.
• For higher arrears, the increase in the threshold reduces the portion subject to percentage-based calculation, which may slightly moderate fee escalation in some cases.
• Landlords should reassess the cost-effectiveness of CRAR in recovering smaller debts. 
• 3. Increase in Enforcement Fees

For the first time since 2014, statutory CRAR enforcement fees will increase by 5% across all stages:

• Compliance Stage: £75 → £79
• Enforcement Stage: £235 → £247
• Sale Stage: £110 → £116

Practical impact:

• The cost of pursuing arrears through CRAR will rise modestly.
• These increases, while relatively small individually, may accumulate in more complex or prolonged enforcement cases.
• Landlords should factor updated fee levels into recovery strategies and budgeting.

4. Broader Implications for Landlords and Tenants

These amendments collectively signal a shift towards:

• Enhanced procedural safeguards for tenants
• Greater transparency and structure in enforcement costs
• A more measured pace of enforcement action

For landlords, the extended notice period may necessitate earlier intervention when arrears arise and increased reliance on alternative remedies such as forfeiture (where available) or debt proceedings.

For tenants, the reforms provide additional time to engage with landlords and potentially avoid enforcement altogether.

Conclusion

The 2026 amendments to the CRAR regime introduce meaningful procedural and financial changes that stakeholders must prepare for ahead of implementation.

Landlords should review internal processes, enforcement timelines, and cost assumptions, while tenants should be aware of the additional protections now available to them.

If you require advice on how these changes may affect your property portfolio or enforcement strategy, please contact the Ortolan Legal team.