Commercial rent collection in the North West remained roughly flat last month compared to the previous quarter day in March, but the region fared significantly worse than the UK average, new figures show.
As of 28 June, commercial property landlords in the region had collected 30% of rent due by the second-quarter deadline date of 24 June, according to the latest data from Re-Leased, a cloud-based property management platform.
This represents a drop of one percentage point on the 31% of rents owed for the March quarter that had been collected soon after the last deadline date.
However, the region’s performance in June is eight percentage points lower than the UK average of 38%.
While commercial rents were due on 24 June, landlords continue to receive rent from their tenants in the ensuing days and weeks, so the figures are certain to improve as landlords reconcile payments, Re-Leased noted.
The figures provided relate to all commercial real estate assets and are not specific to one industry sector.
The North West is performing at -8% compared to the UK picture, however at just -1% compared to March on day 4, it is on par with previous quarter’s performance at this stage in the rent cycle.
Re-Leased’s chief executive Tom Wallace said: “As the first week of this quarter has progressed, there are some new positive signals for the UK-wide picture. By day four [after the deadline date], June is tracking like-for-like with March with 38% of rents due paid.
“This demonstrates that since the due date on 24 June, where 18.2% was received, the rate of collection has improved. This is a promising sign and should provide landlords with a degree of reassurance.”
“There is of course regional variation across the country,” he added. “The North West is tracking at -8% on the UK average, however it’s only -1% behind its March comparison and so on a par with its previous quarter’s performance at this stage in the rent cycle.”
The West Midlands is outperforming the UK average by three percentage points, having collected 41% of rent due, according to Re-Leased.
While the London region is marginally behind the UK average, “it’s encouraging to see” that collection as of 28 June was up three percentage points compared to the last quarter, it added.