A new report has warned that the UK’s commercial property market is likely to continue to flounder in 2010 as over-supply leads to further vacancies and falling rents. The sole exception to this trend is expected to be London.
The outlook for the country as a whole is pessimistic. One problem is the growing public debt, meaning that local government will have to make efficiency savings. But the prospect of the General Election is also adding further uncertainty to the situation, because any change in government planning policy may have an impact on development plans.
Having already enjoyed a measure of recovery after a terrible two years, the cost of London office space is expected to continue to rise as business in the financial sector picks up again. The report predicted that prime rents would rise 10 percent in London overall.