Less than 20% of
commercial rents in the UK were collected by landlords on June quarter day,
according to initial data that suggests a stark slump in tenants paying their
bills during the Covid-19 downturn.
owners brought in just 18.2% of rents on 24 June, marking a drop from the 25.3%
received three months ago on the March quarter rent day.
from Re-Leased shows the lowest collections came from retail tenants, with
landlords in the embattled sector collecting just 13.8% of rent for the June
quarter, down from 19.8% in March.
assets have proved most resilient collecting 22.8% of rent due.
compared to March quarter when 31.2% was collected, this sector has seen the greatest
decline with rent collection falling by 8.4%.
months, the industry has been speculating what the real impact of coronavirus
will be on the UK’s property market. June quarter gives us the first real
indicator of the severity of the crisis and quantifies the pressure both
landlords and tenants are under,” said Tom Wallace, Re-Leased’s chief
“Looking at the level of rent that was collected on due date is sobering, but
initial signs are not as catastrophic as some were forecasting. We expect rent
collection to steadily increase over the coming weeks, but it is unlikely to
reach the level that we saw in March.”
analysis of 35,000 commercial leases provides the first indication of how
landlords fared on 24th June.
analysis for the March quarter revealed that 67% of commercial rent had been
paid 60 days after the deadline. This compared with a figure of 84% for the
December 2019 quarter.