- Near pre-pandemic collection levels achieved in 21 days, showcasing resilient recovery amid varied sector performances
Data released by Remit Consulting has revealed the highest 21-day rent collection rates for commercial property in the UK since the start of the pandemic.
The latest findings from Remit Consulting’s ReMark Report, reveal that 21 days following the March Quarter Day due date, 94.8% of rents due on commercial properties had been collected by property managers, landlords and investors - the highest level recorded at this stage of the financial quarter since the pandemic began and nearly mirroring pre-pandemic levels. However, rent collection rates on the due date and after seven days remain significantly below pre-pandemic levels.
Elijah Lewis of Remit Consulting commented on the findings of the ReMark Report, stating, "The turnaround in collection rates isn’t merely a byproduct of economic revival. Property managers have been crucial, adopting proactive strategies and enhancing rent collection methods, which have significantly impacted the results.
"Despite these improvements, it's clear that we are still some distance from 'business as usual' in the early stages of each quarter, and while the collection rates are on an upward trajectory, the issue of late payment on the due date remains a concern. These delays have broader financial implications for property owners, including potential losses in interest income for institutions like pension funds and insurance companies."
Remit Consulting’s ReMark Report, records data from around 125,000 leases and nearly £2 billion in rent demands. The latest figures confirm that, while rent collection rates have improved quarter by quarter since the pandemic’s national lockdowns, collection rates of rents and service charges have yet to return to the levels recorded pre-pandemic.
At the start of the current quarter, the retail sector, which was particularly badly hit by the national lockdowns recorded the highest percentage of rent collected (77.6%) at the due date recorded since the start of the pandemic. This figure increased to 88.4% within seven days, and after 21 days reached 94.5%.