UK Rents Begin to Slow

LONDON-the growth rate of rental values across the UK property market growth is beginning to slow, according to the CB Hillier Parker Rent and Yield Monitor. For the second quarter of 2001, rental values for prime West End space fell by about 0.5% over the past quarter, with the index falling from 166 to 165. But West End rents are still 15.5% up on their level a year ago.

Greg Nicholson, CBHP’s Head of Investment, says: ‘The prospects for the economy are uncertain and we appear to be heading for a period of slower growth as a result. The impact of the slowdown in the US on both the UK economy and property market appears to be relatively muted at the moment, but occupiers and investors are maintaining a watching brief.’

Other parts of central London are still seeing growth, however. City rents grew 1.8% in the quarter and 19.7% on the year, while the Midtown market was the strongest in London, with 6.5% growth in the quarter and 28.8% in the past 12 months.