Rent Collection Across the UK Highest Since Pre-Pandemic

Re-Leased, the cloud-based commercial property management platform, has published its latest rent collection figures across all commercial property sectors. These new figures analyse rent collection two thirds of the way through the current rent quarter, which began on the 29th September. 

They reveal that, by day 60 of the September quarter (28th November), average rent collection across the UK was at 76%. This figure is the highest number at this point in the quarter since pre-pandemic, with all sectors seeing a significant boost compared to last quarter. At the height of the pandemic, this figure dropped to just 67% at the same point in the quarter.

UK Average and Asset Breakdown

Total Reconciled (as of day 60)

Dec Qtr 2019

Mar Qtr 2020

Jun Qtr 2020

Sep Qtr 2020

Dec Qtr 2020

March Qtr 2021

June Qtr 2021

Sept Qtr 2021

*Average

84%

67%

68%

75%

74%

70%

68%

76%

Retail

84%

59%

60%

72%

68%

67%

67%

73%

Office

81%

74%

76%

79%

77%

79%

74%

77%

Industrial

90%

74%

75%

79%

81%

74%

77%

80%

*Includes other asset classes with smaller sample sizes (commercial, leisure etc)

 

 

 

The data also shows a promising development in the retail sector, with rent collection now sitting at 73%, just behind the national average. Re-Leased data has shown that the retail sector has been the hardest hit throughout the pandemic, with rent collection falling to as low as 59% at this point in the March quarter, and has been slower to recover than other sectors. With this figure now at the highest point since pre-covid, retail is now on track with the national average recovery.

Sam Caulton, CFO of Re-Leased, said: “Rent collection data continues to provide valuable insight into performance across commercial property sectors. These latest national figures are really encouraging, particularly for retail which is now beginning to catch up with other real estate sectors after a difficult 18 months. We can expect this upwards trend to continue into the next quarter as we see the effects of a return to Christmas shopping in person.

This latest data also shows that rent collection in the office sector is steady, as it has been for the past few quarters, and supports recent reports of the industrial sector’s strength. Recent Savills data revealed that 2021 is set to be a record-breaking year for industrial and logistics in terms of capital deployed, with the £10.8bn invested by November this year already surpassing the £10.2bn spent in the whole of 2020. Savills’ data also revealed vacancy rates of just 3.3%, with quoting rents having grown by as much as 15% in some key locations.

Caulton continued: “As the country recovers from the pandemic, the industrial sector is proving vital to economic growth, which will be welcome news for landlords. Not only are rents surging as demand for space grows, but rent is being paid in full and on time across much of the sector.”

As well as showing a boost across all sectors for this quarter, Re-Leased’s latest data tells a positive story for many of the UK’s regions. The North East and East of England have seen the strongest recovery, whilst London is also beginning to trend upwards after a tough June quarter, although rent collection in the capital is still sitting well below the national average, at just 60%.

UK Regions

Total Reconciled (as of day 60)

Dec Qtr 2019

Mar Qtr 2020

Jun Qtr 2020

Sep Qtr 2020

Dec Qtr 2020

Mar Qtr 2021

Jun Qtr 2021

Sep Qtr 2021

East Midlands

88%

63%

68%

78%

75%

79%

83%

81%

East of England

97%

69%

65%

74%

82%

71%

58%

83%

London

90%

57%

64%

68%

63%

68%

56%

60%

North East

60%

89%

89%

83%

40%

48%

84%

North West

75%

65%

55%

72%

71%

63%

70%

82%

South East

80%

62%

67%

73%

65%

59%

72%

74%

South West

84%

51%

51%

62%

53%

52%

56%

69%

Wales

89%

81%

77%

84%

81%

76%

80%

80%

West Midlands

91%

75%

82%

81%

87%

76%

79%

79%

Yorkshire And Humber

70%

66%

61%

74%

72%

74%

79%

83%

 

 

 

 

Re-Leased’s analysis is based on live rental collection data from over 10,000 commercial properties and 35,000 leases on its UK platform.