The latest results by a major property asset investment firm have provided another indication that the commercial property market is well on the way to recovery as the pandemic eases.
Commercial real estate investor UK Commercial Property (UKCM) revealed that its net asset value for the six months to the end of June 2021 was six per cent, in contrast with a negative return for the equivalent period in 2020.
Part of the recovery came through increased rent collection, which had soared by 92 per cent in the third quarter billing period that ended on August 31st, with this being largely thanks to some successful negotiations with tenants who had not been able to pay all they owed, although talks were ongoing with others.
Chair of the firm Ken McCullagh said: ”The easing of lockdown measures and the vaccination roll out in the UK has triggered a much-needed recovery in the economy and UKCM is seeing the positive impact of this.”
This news may be seen as a highly positive sign by landlords, who could see it as a sign to get in touch with commercial property solicitors to make timely investments in the market as it moves into an upward phase and provides the opportunity to buy appreciating assets.
However, while there may be great opportunities for new investors, many existing landlords may need expert help for a different reason, as some of the benefits of the easing of Covid restrictions will be several months away from being realised.
Yorkshire-based property expert Stephen Beverley, who works for insolvency practice Graywoods, told Business Daily commercial landlords may be owed as much as £6 billion in unpaid rent, with government regulations designed to protect businesses giving them a holiday form having to pay this.
However, he noted, this has passed the problem onto landlords and with the payment time for monies owed stretching to the end of March 2022, it will be some time before all the bills are paid.
“For well over a year now, those landlords have been struggling with this issue and for them, March next year must seem a long way off yet,” he remarked.