Landlords of commercial properties in the UK are continuing to see a shortfall in the amount of rent paid by their tenants, according to the latest research published by Remit Consulting.
Average rent collection rates reached 83.3% within 35-days following the December Quarter Day due date – marking the second-highest 35-day percentage recorded by Remit Consulting since the start of the pandemic.
This number remains, however, 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.”
