The collection rate of rent for commercial property, seven days after the March quarter day due date, reached a national average of 76.5%, an increase of 13.5% over the seven-day period and the highest collection rate witnessed so far during the pandemic, according to the latest research from Remit Consulting.
“At the start of this quarter, collection rates were almost identical to those seen three months previously and, considering that the government's moratorium on the eviction of tenants for non-payment of rent had been lifted, the figures were lower than expected by many commentators,” said Steph Yates of Remit Consulting.
“While it is possible that the increase in collection rates witnessed over the first week of the quarter could be a result of the lifting of the moratorium, it should also be remembered that many leases on commercial properties provide a seven-day grace period on payments, which may have impacted the due date figure from a week earlier.
“The uplift of the overall national figure to 76.5% is, however, a hopeful sign for landlords and investors who have seen a continual shortfall in the collection of rent due to them over the past two years. While the trajectory is similar to that seen in our REMark study of 2019, the figures are still around 15% lower than pre-pandemic levels,” she added.
The management consultancy’s REMark Report reveals that, at 76.5%, the collection levels of rent are over 4.7% higher than at the same stage in December and 4.4% higher than after seven days of the September quarter.
Rent collection rates for leisure properties reached 75.4% seven days after the March 25th due date, an uplift of more than 20% over the first week of the quarter. Collection rates for retail properties saw an increase of 12.7% over the first week of the quarter, reaching 77.2%.
Remit Consulting has been analysing the collection of rent and service charge payments by the country's largest property management firms since March 2020, working in conjunction with the British Property Federation (BPF), the RICS, Revo, the Property Advisors Forum, and other members of the Property Industry Alliance (PIA). The research covers around 125,000 leases on 31,500 prime commercial property investment properties across the country.