The rise in property rises has tailed off in the last quarter, warns the City’s biggest landlord, British Land. The Real Estate Investment Trust, which has total assets of £13.5 billion, also says that, despite the slowed recovery, the demand for prime London office space continues to push rents higher.
Chris Grigg, British Land’s CEO, commented, ‘Valuations won’t grow as quickly. But in terms of rental growth we’re quite optimistic. It’s a function of “not much supply.”’ Grigg also pointed out that ‘Risks to the global economy seem to have increased in recent months.’
This may be a primary reason that the value of commercial property rose by only 0.5 percent in June, which represents the smallest increase since the beginning of the market’s recovery period. British Land themselves seem on track in the recovery process, with pre-tax profits of £64 million for the last quarter – £1 million up on the previous year.