L.Night-right revelers and propagandists simply do not fail the latest restrictions aimed at spreading the coronavirus. Orders to start work from home and close pubs and restaurants by 10pm will not help homeowners repay the ফ 4.5 billion they missed from mid-March to the end of the year.
“The restrictions imposed this week represent a step back in the economic recovery and will negatively affect businesses in most sectors. While we think these restrictions are fairly unnecessary, we think they will reduce the amount of rent they are able to collect, ”said Mark Jarrett, head of property management at Colliers International.
Even after the government decides how landlords and commercial tenants should share the pain of lost income while socializing and cutting back on shopping, both sides are still slagging it, saving in stores.
On Tuesday, September 29, we get a glimpse of how the fight is going on in the “Quarterly Day” on September 29, when the shop and restaurant landlord tradition collects one-fourth of the annual.
Although many retailers and hospitality businesses have now moved toward paying monthly to manage cash flow, the quarterly gap provides the key moment of assessment.
Two months after the June rental day, landlords recovered about 18% on the due date, according to analysts at property software company Re-Leased. The figures relate to expected rents at the beginning of the quarter and therefore do not reflect a sufficiently agreed reduction as discussed by many retailers.
This month’s rental is expected to follow this pattern. Shops may have reopened in June after nearly three months of lockdowns, but the slow return to high streets has maintained economic pain.
The epidemic seems to have accelerated the switch to online shopping, and many thought twice about the potential job losses and spending for essentials such as pay cut looms. Cash-strapped retailers are taking advantage of a temporary ban on evictions for cash savings – not to pay rent – for cash savings now extended to the end of December.
Since March 16, more than half of the retail rent and just under 70% of the retirement rent have been subject to some renewal, according to Remit Remit.
Powerful groups like Next and JD Sports have used their muscle to agree to significantly lower deals as soon as the lease expires. More broken retailers like New Look have started implementing insolvency to get rental leave or turnover-based rent changes.
Tom Wallace, chief executive of Re-Lizard, said: “All eyes are now on September 29 and the next quarter. With the announcement of the new restrictions on September 22 and the extension of the previous week’s rent suspension, it is strongly suggested that no improvement in rent collection is successful. “
He further added that the income deficit of landlords should not be reduced. “It’s a huge amount of money that goes into the billions and puts a huge strain on landlords.”
As weak trading months continue, the system is gaining momentum and even the Queen’s money is under pressure: Crown Estate has collected about 52% of its rent from its retail tenants. Last week, Shaftesbury, one of the largest landlords in central London, said high-street traders had paid less than half the rent since March.
Melania Leach of the British Property Federation, which represents thousands of homeowners, says growing debt is now becoming “a high mountain for business and property owners”.
He argues that where businesses cannot simply repay this debt, the government should collect half the rent through a “bounce-back grant,” while landlords and tenants agree on how to deduct the other half.
The details of the latest quarterly rent hikes could add to the pressure on the government.