UK property funds slash high street exposure during difficult 18 months

The pandemic has driven fund managers to renegotiate rents in some cases and has accelerated divestment from subsectors already facing longer-term issues.

An estimated £6.4bn of rent has gone unpaid as a result of Covid-related business closures, according to the FT, with the ban on commercial property evictions set to remain in place until March next year.

Funds in the IA UK Direct Property sector have reduced their exposure to retail property during 2021, with an average allocation of 5.9% at the end of July compared to a peak of 8.7% at the end of January, according to FE fundinfo.