The top of the UK property sector is prime London office rentals and the cream of the London office lets are the City and the west end. So it is always worth while watching what is happening at the top of the tree. Some analysts are expecting rents in prime London offices to rise 10% in total from 2009 levels to 2011. There have been very limited new developments in the city as tighter planning and tighter bank lending criteria have slowed the pace of new property developments.
The return of instructional investors to the UK commercial property investment market has forced some buyers to relax their purchase criteria, so they cannot make the demands for security they could 12 months ago. With many now confident there will be no double dip in this most established of institutional investments it does give further encouraging signals for the wider UK economy.
With the first tentative whispers of some UK banks lending for speculative property development and residential landlords with cash buying houses the property sector enters 2010 in much better condition than many experts had expected.
Cash for houses, rent for offices, and funding for investment, property market recovery?
January 20, 2010
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