"Patchy" commercial property market in UK

Office design news from Morgan Lovell

Published on 27-07-2010

The UK commercial property market has become "patchy" over recent months, one sector commentator has claimed.

Andrew Burrell, partner in research at King Sturge, said office design projects in London are performing well and rents have remained stable in the capital. However, the rest of the country is still suffering from the effects of the recession and the impact of the emergency Budget could be felt more keenly outside the south-east.

He commented: "I would also say that there are strengths in the UK property market, but then there are also weaknesses; you wouldn't look very much to offices outside of London."

Mr Burrell added that this is not solely a UK problem, as across Europe a squeeze is being felt in the commercial property sector.

According to CB Richard Ellis, UK commercial property capital growth slowed to 0.6 per cent in June, taking the year-to-date increase in property values to 6.8 per cent.

Figures compiled by the company showed the all property total return for June slowed to 1.1 per cent from 1.2 per cent in the previous month.

Posted by Adrian Norman.