June rent collection rises to 46%

Commercial occupiers in the UK have now paid 46% of June quarterly rents owed, up from 18.2% a week ago. The remaining 54% of rent due highlights significant variations in collection across the country, according to the latest data from Re-Leased, which analyses more than 10,000 properties and 35,000 leases in the UK. The West Midlands was found to be the most resilient region, while the East of England was the worst performer. London ranked fifth out of the UK’s regions, slightly below the UK average. Each sector has collected broadly the same proportion of rents owed as they did in the previous quarter. Retail continues to be the hardest hit, after collecting 40% so far this quarter. This compared with 41% at the same point in the previous quarter. Industrial posted a 53% uptick in collection, compared with 50% in March, while the office sector’s levels slowed slightly to 52%. Tom Wallace, chief executive of Re-Leased, said: “While it’s encouraging to see the rate of rent collection has jumped by nearly 30% in seven days, commercial tenants have paid less than half of the rent due for this quarter. “The level of pressure both tenants and landlords are now under should not be underestimated, especially in the retail sector which remains hardest hit. “Continued rent collection for the remainder of the quarter will be challenging, and we continue to encourage transparency between landlord and tenant as outlined in the recently published code of practice.” Wallace added: “As the crisis lengthens and people continue to work from home, the office sector could be the one to watch longer-term. “The conversation around the future of the office is only really beginning. Working from home policies and the impact that will have on workspace requirements are yet be fully appreciated.” To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette