Office lettings market 'will grow' - commercial mortgages

27 August 2008

The office rental market in Yorkshire is predicted to grow despite the national economic slowdown, it has been suggested.

Quoting figures from Lambert Smith Hampton's (LSH) National Office Report 2008, the BusinessDesk website claimed that while London will feel the impact of the credit crunch, the Yorkshire region showed a "strong and improving performance".

The LSH report said the amount of office space being taken up in Leeds city centre rose by 435,000 sq ft last year and rents are expected to increase as a result. This could potentially have an impact on commercial mortgages in the area.

Director of the firm's Leeds office Robin Beagley told the BusinessDesk: "The economy has undoubtedly slowed and this will impact on the office market, however the city centre occupier market still remains steady."

Meanwhile, non-commercial rent charges are falling according to Rentright's residential rental price index. It found that average rent in the UK stood at £588 in August this year, compared with £762 in the same month in 2007.