X
X
Where did you hear about us?
The monthly magazine providing news analysis and professional research for the discerning private investor/landlord

Shortfall of rent paid by commercial tenants during Covid “will exceed £7bn”

The shortfall of rent paid by commercial tenants during the pandemic “will exceed £7bn” according to Remit Consulting. The Government announced on 9 November that it is to introduce a new law that will provide a legally binding process to resolve the remaining commercial rent debts and to ‘protect tenants from rent debt claims against them’, aimed at helping the commercial property market return to normality.

At the end of Q2 2021, Remit Consulting calculated that the total shortfall in rents collected by landlords and managing agents over the pandemic had reached over £6.97bn. In the current financial quarter, 21 days after the September Quarter Day due date, the collection of commercial property rents in the UK reached an average of 81.9%, meaning that almost 20% of commercial property rents were still outstanding for the current payment period.

“While the introduction of the new law should bring clarity for both landlords and tenants, in the meantime there is still the question of the total shortfall of rent payments received by commercial property landlords and investors during the pandemic, which will now exceed £7bn. There is no certainty that all of this money will ever be recovered under the new legislation,” said Steph Yates at Remit Consulting.

If you want to read more news subscribe

subscribe