The Financial Times has reported on Re-Leased's latest CREDIA Index data, showing the rate of rent collection in the UK is at its lowest in a year.
Analysis of live rental collection data from over 10,000 commercial properties and 35,000 leases on the CREDIA Index reveals 18% of commercial rents due for the current quarter were collected by day 0 (24th June 2021). This marks a further decrease on the preceding three quarters.
The delay to the easing of covid restrictions in the UK is clearly reflected in the low average of rental collection and the numbers are more sluggish compared to the last quarter. We can see very similar collection rates to this time last year, although London has had a very slow start," says Caleb Dunn, CREDIA Product Manager.
Whilst there isn't an immediate need to worry that the numbers are a few basis points down to last quarter, it does demonstrate that landlords are struggling with consistent liquidity - we’re still talking about a significant proportion of rent each quarter not being collected.
For more details, see the coverage in The Financial Times, CoStar or the Business Telegraph, with additional commentary from Caleb Dunn and further CREDIA Index data.