INDUSTRY NEWS

London property prices continue to soar as British Land profits rise

British Land released their yearly profits for 2014 today, which show the market growth for London office space is not slowing down.

British Land property rose in value by 12.1% last year, with office and residential space in particular having risen by 18.8%. The Leadenhall building broke rental records, letting space for £90 per sq. ft. The building, nicknamed ‘The Cheesegrater’, is currently 84% let.

From the sale of 22 apartments within their Clarges development in Mayfair, British Land made £259m, averaging around £12m per flat. The development also broke sales records, selling space for an average of £4,750 per sq. ft.

The company have attributed the rapid growth within the real estate market to foreign buyers who purchase property as a form of investment. British Land said, “the UK remained the real estate investment market of choice for overseas capital in search of yield. London continued to be the principal beneficiary, with demand driving yields down in both the City and West End.”

It is estimated that London’s market growth will continue to progress, with areas such as Shoreditch and Surrey Quays set for significant development plans.

British Land’s pre-tax profits for the 2014 tax year rose 5.4% from the previous year, reaching £313m.

By: Kirsty MacGregor

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