West End ''in better shape'' to face downturn - commercial mortgages

18 April 2008

In news which may provide those with commercial mortgages with ideas on where they should be investing, the Royal Institution of Chartered Surveyors (Rics) has predicted that the West End of London will survive the problems in the commercial office sector better than most other localities.

Senior economist Oliver Gilmartin agreed that there have been clear signs that the West End is dealing with the downturn better than the City of London.

He explained: "The supply situation may be more favourable and boutique operations may be less exposed to the sub prime fiasco than the larger investment banks."

Such a situation may give a particularly clear pointer to the situation in London.

The CB Richard Ellis index of prime Central London rents revealed that the growth in London rents has slowed, but not stopped.

In the last quarter of 2007 it was 1.8 per cent, compared with 2.6 per cent in the third quarter.