Retail landlords received just 13.8% of rent owed

Commercial landlords paid just 18% of rent they were owed
Experts call for extension on rent rates for retail landlords with properties vacant and to let.
// Commercial landlords received less than one-fifth of rent owed this quarter collection day
// Retail landlords were the worst performing group

Commercial landlords, including landlords who own retail properties, were paid just 18.2 per cent of the rent they were owed on Wednesday’s quarterly rent collection date.

Landlords with retail properties were the worst performing group of this week’s quarter collections, receiving just 13.8 per cent of rent owed, compared to 19.8 per cent in the previous quarter.

READ MORE: Crunch time for landlords & retailers as quarterly rent deadline arrives

As part of its quarterly rent reporting, Re-Leased, a cloud-based commercial property management platform, worked out the figures based on more than 10,000 commercial properties and 35,000 leases on its UK platform.

“June quarter gives us the first real indicator of the severity of the crisis and quantifies the pressure both landlords and tenants are under,” Re-Leased chief executive Tom Wallace said.

“It’s crucial to remember that like tenants, landlords will be experiencing significant cash flow problems and have their own financial obligations to meet.

“Looking ahead to the end of the year, we expect there will be more pressure to come.

“Vacancy rates, rental values, lease terms are all going to see noticeable shifts over the next six months.

“The temporary ban on evictions for non-payment of rent and the government furlough scheme is providing a lifeline to many tenants at the moment, but those measures will not last forever.”

The UK Government has banned landlords from evicting tenants to try and protect struggling retailers during the ongoing coronavirus pandemic.

However, there are concerns this may have encouraged tenants not to pay even if they can afford to do so. 

Altus Group head of UK business rates Robert Hayton said: “Occupied retail, leisure and hospitality premises in England have received a business rates holiday during 2020/21 worth £10.13 billion but landlords have largely been overlooked despite being ask to play their part by waiving or deferring rent to help their tenants survive.

“It is only fair that there is tax parity and that the rates holiday is extended to those properties vacant and to let.”

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