Will City rents increase in 2010?
A report by property consultants King Sturge claims that the rental values will increase by up to 10.5% in the City of London in 2010. While this is obviously a massive U-turn compared to the 40% collapse in rental values during the recession there is some concern about the basis upon which these forecasts have been calculated.
The consultant seems to be ignoring the fact that a number of prominent financial institutions in the UK have threatened to leave these shores because of the UK government's banking tax. While initially many believed this was nothing more than a publicity stunt and a bargaining tool by the financial sector there are signs that some large institutions are seriously reconsidering their position within the UK. If this was the case, and prominent financial institutions did leave the UK, this will do nothing to strengthen rental values in the capital and the forecast of a 10.5% increase in rents could turn out to be a little optimistic.
In many ways the London economy is separate to the overall UK economy and is very much a leader in this country. When you consider that property prices in some areas of London are now at similar levels to those seen in 2007 it is easy to forget that we are still in the grip of a recession.
Share this..
Related stories
Six local authorities charged with parking ticket violations
Which? magazine has confirmed, via a Freedom of Information request, that six local authority councils in the UK appear to have broken UK government guidelines regarding parking tickets issued by their wardens. Government guidelines clearly state that no quotas should be set and there should be no expectations of the amount of parking tickets and penalty notices to be served. However, it seems tha...
Read MoreTwo thirds of people don’t pay attention to pension pots
29/07/2015 Two thirds of people over the age of 45 have admitted to not paying any attention to their pension pot, according to research from Aviva. The research found that 41% of people aged over 45 never take the time out to review or plan their pensions, and 29% only spend one day a year doing this. A quarter of those that are retiring as soon as 2017 have still failed to spend any time...
Read MoreYorkshire Bank miscalculated customer mortgage payments
It has been revealed that Yorkshire Bank, which also owns the Clydesdale Bank, has been forced to issue a grovelling apology to 18,000 mortgage holders who have been under charged with regards to their mortgage payments. Due to a "software error" around 50% of those affected will be forced to increase their mortgage payments by £25 to make up the shortfall due to under payments in the past. Howev...
Read MoreWhy is the current recession unlike so many others?
As the UK and the worldwide recession continues unabated many people are starting to ask how this particular recession is different from the norm and what exactly is going on. In essence the ongoing worldwide recession is due in the main to a significant reduction in business equity and a sell-off in markets such as the property sector. This has pushed the general wealth of consumers around the wo...
Read MoreSevern Trent Is In Touch With Its Customers
Water company Severn Trent has finally shown that there is at least one company in touch with its customers after suggesting that more and more customers will struggle to pay their bills as the price of water rises and the economy slows down. In a trading update the group commented upon the fact that bad debts look ready to rise over the next 12 months as more of the UK population are pushed onto...
Read More