London businesses 'plan to expand in city'

24 June 2011

Written by Jenny Barrett

Businesses in London may require commercial mortgages to fund expansion plans that have been highlighted in new research.

The Confederation of British Industry (CBI) and KPMG polled 188 organisations based in the capital and discovered 65 per cent are planning to buy new office space and grow, a figure broadly similar to that recorded six months ago.

In December only a third of those companies planned to utilise buildings inside the city to achieve their goals, but that has risen to 43 per cent, the research found.

A further 57 per cent of firms stated that they are now taking on new staff at a normal rate, up from 45 per cent half a year ago.

CBI London regional director Sara Parker noted that it was the capital's "talent pool, ease of access to global markets and proximity to clients" that made it so attractive to corporations and investors.

A recent report from the Royal Institution of Chartered Surveyors found that over the first quarter of 2011, demand for office space in London outstripped the rest of the country.

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