Verified figures of rent collected 35 days after December’s due date reveal an overall figure of 83.3%
Highest 35-day rent payments of the pandemic for retail property
Landlords of commercial properties in the UK continue to see a shortfall in the amount of rent paid by their tenants, according to the latest research published by Remit Consulting. Despite the easing of Covid-19 restrictions, average rent collection rates reached 83.3% within 35-days following the December Quarter Day due date. While this is the second-highest 35-day percentage recorded by Remit Consulting since the start of the pandemic, it is far below the 99% that was recorded at this stage in the firm’s Remark Report from 2019.
The management consultancy’s research reveals that rent collection for offices, industrial and leisure properties are lower than for the same interval of the previous quarter. However, at 83.2%, the collection of rent from retail occupiers is the highest 35-day figure of the past 22 months.
Laura Andrews of Remit Consulting said: “The current trajectory of rent collection rates suggests that at the end of the current financial quarter, when the Government’s moratorium on the eviction of tenants in commercial property for the non-payment of rents comes to an end, there will be a further shortfall of rent collection of around 7-9%, adding to the total shortfall of £7.4 billion in rent that we estimate has been experienced by investors and property owners, which include many pension funds and other institutions.”
Remit Consulting has been analysing the collection of rent and service charge payments by the country's largest property management firms since March 2020, working in conjunction with the British Property Federation (BPF), the RICS, Revo, the Property Advisors Forum, and other members of the Property Industry Alliance (PIA). The research covers around 125,000 leases on 31,500 prime commercial property investment properties across the country.
Commercial Property Rent Collection
Rent collection by sector
Retail property rent collection comparison
