Landlords in the commercial property sector have seen a significant uplift in rent collection, which reached its highest level in the UK since the start of the pandemic.
It was particularly good news in the hospitality sector where the easing of lockdown restrictions in July boosted trade significantly. This led to an uplift in rent collection from retail properties and from pubs, bars and restaurants
According to research from Remit Consulting in its regular REMark Report, the figures reveal that overall, an average of 72.1 per cent of commercial property rents was collected within seven days of the due date. This compares to a figure of 66.5 per cent collected at the same point in the previous quarter.
Steph Yates of Remit Consulting said: “The first seven days of the current quarter saw a rapid increase in the collection of rents and service charge payments, which is good news for investors and landlords such as pension funds and other institutions, particularly as the upward trajectory of payments from tenants is similar to the previous quarters of the pandemic.
“However, this quarter, the collection rates are on average, around six percentage points higher than the previous quarter, which was, in turn, the best three-month period of the pandemic so far.
“While the signs are promising, overall collection rates for both rents and service charge payments are still significantly lower than recorded by the REMark Report over the 10 years prior to Covid-19.”
According to the survey, both the retail and leisure sectors showed significant improvements compared to previous quarters of the pandemic, with 68.8 per cent of retail rents collected seven days after the September quarter day.
This compares to 62.3 per cent at the same stage of the June quarter. At the same time, 57.2 per cent of rents for leisure properties were collected, compared to just 40.1 per cent in the June quarter.
The improvements were reflected by the sub-sectors, with 67.1 per cent of high street retail rents having been collected and 46.8 per cent of rents for pubs, bars and restaurants.
Remit Consulting is an independent European management consultancy specialising in real estate and the figures are verified by the country’s major property management agents.
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