New data from Re-Leased, the cloud-based commercial property management platform, shows the rate of rent collection in the UK is at its lowest for a year, as restrictions on the economy continue to take their toll.
Analysis of live rental collection data from over 10,000 commercial properties and 35,000 leases on Re-Leased’s platform revealed that just 18% of commercial rents due for the current quarter were collected by day 0 (24June). This marks a further decrease on the preceding three quarters. Rent relief and subsidies are persistent, but not at the high levels seen at Christmas six months ago.
Caleb Dunn, analyst at Re-Leased, said: “The delay to the easing of restrictions in the UK is clearly reflected in the low average of rental collection and the numbers are more sluggish compared to the last quarter. We can see very similar collection rates to this time last year, although London has had a very slow start. The data is a good reflection of the volume of cash received on the due date, however we expect to see those figures rise in the coming weeks during the 60-day period. Whilst there isn't an immediate need to worry that the numbers are a few basis points down on the last quarter, it does demonstrate that landlords are struggling with consistent liquidity - we’re still talking about a significant proportion of rent each quarter not being collected.”