What: The UK retail landscape is hampered by a wave of unpaid rental dues which accrued during the pandemic

Why it is important: Even though negotiations are taking place, 1 out of 7 retailers still have to reach an agreement with their landlords, while the official support ends on June 30.

UK landlords claim that there is approximately GBP 6 billion in unpaid rent to be recovered since the beginning of the pandemic, and that a large majority of tenants have come to an agreement. However, some are resisting talks, including Frasers Group and Boots.

The British government support (bans on eviction and judiciary pursuits for unpaid rent) was enforced in March 20 and is expected to end on June 30. What will replace this set of protection is not clear for tenants yet, at a moment when all retailers are trying to get back to a normal pace of activity, after a 15-month period of difficulties.

Last May, the British Retail Consortium claimed that 2/3 of UK retailers were at risk of legal actions. Following discussions, 1 out of 7 tenants still have to come to an agreement, for a total GBP of 1,84 billion in rental value. Boots argues that retail footfall across retail locations have significantly lowered, impacting trade, while they stayed open during the pandemic. Frasers did not comment.

Frasers and Boots frustrate landlords with hardball rent talks