West End rents to climb


A promising start to the year beckons for London’s West End as property analysts suggest that the area will regain some of its allure for investors in 2010. Rent for prime London office space is expected to increase by over 7.5 percent to around £70 per square foot, due to a shortage of supply coupled with returning demand.

The banks’ apparent back-down over the 50 percent tax on bonuses has strengthened hopes; at one stage, a number of banks were threatening to leave the country if the tax went ahead. However, this has been put down to posturing by critics, with no visible signs that such a move is actively being considered.

At the beginning of 2007, just before the bottom fell out of the market and prime office space dropped in value by nearly 50 percent, West End office property was regularly worth in excess of £120.

Image: Flikr (Tjeerd)