Buy to let commercial property market getting stronger, research reveals

22 April 2010

Written by Steve Olejnik.

Rent expectations for commercial property in London rose at a faster rate in the first three months of 2010 than in the last two years.

A survey of UK buy to let commercial property conducted by the Royal Institution of Chartered Surveyors (Rics) has found that anticipated rent rates in the city have increased.

Rics has reported a positive net balance of 57 per cent for Central London as the amount of available office space declined for the second quarter in a row.

This is the first time expectations of rent have risen above zero since 2007 and the biggest jump on record.

Oliver Gilmartin, Rics senior economist, said: "There are some signs that a lower pound and a gradual rebalancing of the UK economy towards greater export activity is starting to feed through into industrial letting activity most notably in London and the South."

Confidence in the outlook for lettings has increased as the market picks up. However, some surveyors are concerned about how employment cuts after the election will impact the sector.

Rics is the world's leading regulator of land, property and construction standards.

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