London ''to offer developments to SMEs'' - commercial mortgages

31 July 2007

New landlords with smaller commercial mortgages looking to move into more prestigious areas are likely to be among those attracted to a new scheme created by the City of London Corporation.

Flexible leases of just one year will be among the innovative offers available as part of the scheme, designed to attract creative firms to the outskirts of the Square Mile, the Financial Times reports.

Such schemes would contribute to the prosperity of London as a whole, a City of London Corporation official told the paper.

“It is vital that we are not short-sighted in believing the capital''s success lies only in the wealth of the Square Mile,” commented chairman of policy & resources Michael Snyder.

Earlier this month Knight Frank reported that office rents in central London are growing at their fastest pace for seven years due to limited supply and higher demand.

The British Property Federation (BPF), meanwhile, advised last week that flexible leasing would be one initiative it looked for when deciding which landlords would qualify for its Commercial Landlord Accreditation Scheme (CLAS).