News & Insights
Today is the first quarter day for rent collection of 2021, a year in which businesses across the UK will look to recover following the financial challenges presented by the pandemic.
Statistics from 2020 have highlighted the economic struggles of firms.
Rent collection levels dropped drastically as the year wore on, particularly amongst landlords of the hardest hit tenants in the retail and hospitality sectors.
Recent reports estimate that outstanding rental arrears could total £7 billion by the end of the pandemic.
The eviction moratorium has provided protection for tenants where rent payments have been impossible. Conversely, the Code of Practice for commercial property has sought to guide landlord-tenant relations, though with limited success in certain cases.
In early January 2021, two prominent landlords, Landsec and British Land, announced a noticeable shortfall in retail rent payments for Q4 2020 when compared to collection levels of the previous year.
46% of rent was received from commercial tenants of British Land, whilst Landsec estimated they had obtained only a third of payments from their business occupiers.
This is a clear indicator of where government schemes have failed to support a huge number of commercial tenants and, ultimately, the CTA predict that a comparable set of figures will be returned by landlords over the coming days.
This gap in government support, or lack of clarity surrounding the support available, has only served to increase tensions surrounding leased and licensed commercial properties. The CTA encourage landlords and tenants to seek collaborative solutions to problems regarding rent arrears.
We will be monitoring reports regarding rent collection over the next few days to assess the position of commercial tenants across the UK and are here to help tenants who cannot pay their rent.