60% of West Finish store rents left unpaid for previous six months

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Shaftesbury, one of many greatest landlords in central London, has mentioned struggling excessive avenue companies had paid lower than half of the hire due since March, whereas a flight from the capital had left it with a glut of empty flats.

The property agency, which owns swathes of trendy districts together with Soho and Covent Backyard, mentioned it had obtained solely 41% of the hire for the six months to 30 September.

It is usually struggling to relet flats, which have been as soon as sought-after bases for worldwide college students and younger professionals, with a fifth of its 662 residences at present mendacity empty.

The lockdown restrictions meant many tenants selected to return to their nation of origin, leaving flats unoccupied, the corporate mentioned. “With the persevering with uncertainty, many of those abroad tenants have chosen to not return to the UK in the meanwhile and have vacated completely.”

Shaftesbury mentioned throughout the West Finish, many landlords who normally set free their flats on a short-term foundation or to serviced condominium operators, have been looking for long-term tenants. “This has resulted in a near-term over-supply of residences to let, inflicting some downward stress on rents,” it mentioned.

Though the variety of folks returning to the West Finish is growing, footfall continues to be about half of pre-pandemic ranges, Shaftesbury mentioned, which was having a dramatic impression on retailers, cafes and eating places within the space.

After an prolonged interval of closure, Shaftesbury mentioned most of its 611 eating places, cafés, pubs and outlets had reopened. Nevertheless regardless of the enhancing footfall, retailers particularly have been reporting “significantly decrease” turnover. The corporate is providing numerous types of help and in some circumstances waiving hire or agreeing to restructure leases.

Owing to the tough buying and selling situations, coupled with the potential for additional coronavirus restrictions, the corporate mentioned it had determined to not pay a last dividend.

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