London property outlook 'is best in country'

04 July 2011

Written by David Whittaker

Commercial mortgage holders with buildings in London own property in the most positive-looking market in the UK, new research has revealed.

The Royal Institution of Chartered Surveyors (Rics) found that, in provisional results for the second quarter of 2011, this area saw the amount of finance available to investors rise, although there was a contraction in yields.

Nationally as well as in the capital, office space outperformed both the retail and industrial sectors for tenants and landlords, with demand for these premises also growing.

Simon Rubinsohn, Rics chief economist, noted that the second quarter results show "a stark regional divide, with sentiment in London generally more upbeat than elsewhere around the country".

This discrepancy is similar to findings from the first quarter of the year.

He added that there is "little reason" to believe that the city's improvement will be seen throughout the rest of the country "in the near term".

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