London office market "extremely buoyant" - commercial mortgages

02 July 2007

Rents in London offices will increase by around ten per cent this year, a leading industry figure has said, dismissing concerns of a potential slowdown.

Land Securities chief executive Francis Salway, speaking to the Independent on Sunday, said that growth will remain at above average levels.

The newspaper reports that London''s status as a global financial centre is leading to an increasing number of companies opting to locate their European and global bases in the capital.

The London office market is extremely buoyant. We suspect it could surprise on the upside this year with financial services being so strong," Mr Salway noted.

"We are looking at above-trend growth in rental values across the board. People have lost sight of this. We are a strong economy," he added.

Landlords with commercial mortgages are likely to enjoy greater returns on investment as a result, a fact which supports recent studies that have revealed strong levels of confidence in the sector.