Buyer and seller "stand-off" in UK office market

Office design news from Morgan Lovell

Published on 17-12-2010

A stand-off between buyers and sellers is currently taking place in the UK office interior and commercial property market, it has been claimed.

Kelvin Davidson, property economist at Capital Economics, said the slowdown in the market has led to many businesses seeking better deals for their office requirements, but maintained demand for space means landlords are unwilling to meet these calls.

He commented: "It seems to be a bit of an issue at the moment in the UK that maybe there are a few more people deciding to sit on their hands now and transaction volumes have dipped in the last few months."

According to figures from Investment Property Databank, UK commercial property values grew by 0.1 per cent in November, contributing to a compounded 6.6 per cent capital growth over the year to date.

However, it showed that the bulk of this capital appreciation was delivered over the first six months of the year.

Posted by Ian Johnson