INDUSTRY NEWS

London’s secondary property market lifts

Foreign investors have been credited for the rise in the value of prime commercial property in London over the past quarter, but secondary properties in the capital are now thought to be enjoying their own recovery on the back of this.

Investors have initially focused on high-value office space with significant growth potential, but such is the volume of overseas money flooding into the UK to snap up bottom-of-the-market bargains that the effects are spreading to other sectors.

Meanwhile, other analysts are sceptical about the strength and sustainability of any recovery, with yields still falling in London and other major European cities. Rents are down by around a third from their peak. Ratings agency Moody’s cast further doubt on an upturn, stating that commercial property values would be unlikely to improve significantly over the next five years.