London office space set for boom year
Property specialists Knight Frank have today issued a report suggesting that the London office market is set for a boom 2010 due in the main to supply difficulties. It is forecast that the value of office space in London could increase by up to 43% with rents set to rise by 19%. These are exceptional figures but then again the London office market is an exceptional market!
As you would expect from what is effectively a mini economy within the UK, the London property market has a wide variety of property available at very different prices and of very different quality. The main reason for the expected boom time in London is purely and simply because of a lack of new commercial property coming online with many developments having been mothballed or cancelled outright when the credit crunch hit home and the economy turned down.
Even though a number of prominent UK property developers have stepped forward with new ideas and new property developments, these will take some time to bring online, hence the short-term issue with supply. It is forecast that actual available office space in London will fall by 14% this year while the number of new office schemes completed will fall by up to 26%. When the new supply comes online we should see prices and rental costs start to stabilise.
Share this..
Related stories
Managing your energy costs
While monthly budget management may not be one of the most exciting subjects in the world it is one which is catching the eye of more and more UK consumers as times get harder. The opportunity to save just a few pounds "here and there" could reduce pressure from the increased cost of living which is sweeping across the UK. Energy costs seem to take more than their fair share of monthly income and...
Read MoreCar insurance premiums set to rise
A growing number of "crash for cash" scams in the UK and car insurance fraud have directly influenced the ever-growing rise in UK car insurance premiums which increased by 12% between January and June of 2010. This is the unseen cost of car insurance fraud and unfortunately it is something which law-abiding customers are being forced to cover. At a time when UK finances are literally being stretch...
Read MoreCould we see the first £10 bottle of champagne?
In a sign of the times it has been revealed that we could see the first £10 bottle of champagne this Christmas with a stockpile of champagne held by retailers in the UK due to a lack of interest during the recession. Already we have seen the likes of Majestic Wines offering a 40% discount on top of the range champagne and many people believe this is just the tip of the iceberg and prices will fal...
Read MoreIs it safe to go back into the stock market?
The UK stock market and the majority of worldwide stock markets have been under severe pressure over the last 12 months although there was something of a worldwide recovery towards the end of 2008. This has probably prompted many investors to ask if it is now time to go back into the UK stock market and start building up a portfolio for the future having seen many prices fall substantially. So is...
Read MoreCo-op reveals increase in mortgage applications
Despite the fact that the UK property market is under pressure the Co-operative Financial Services operation has today revealed a 31% increase in mortgage applications in the first six months of 2010. The company believes that its financial strength, quality of products and quality of service are behind the increase in applications even in these most difficult of times for the property sector....
Read More