Whilst London's commercial property sector shows some signs of a turnaround, and a slight improvement, the latest survey carried out by the Royal Institute of Chartered Surveyors (RICS) on commercial property in the UK shows that the West of the UK is recovering at a much slower pace.
Prices of office rental rose dramatically for those in London, rising to above zero for the first time since the end of 2007 as the amount of space that was available decreased for the second quarter in a row. This was the first time more surveyors from RICS had reported an anticipated increase in rents for two years. The overall positive increase of the net balance of 57 per cent (instead of the previous balance of zero) of the office property in Central London was the biggest upward jump since records began. This is in contrast to the situation in Bristol where available office space Bristol is on the increase across all of the sectors and expectations of rental are still negative.
In Bristol, expectations of rental prices across all commercial sectors stayed negative but still reported the highest amount in two years. With 21 per cent having a decrease rather than an increase in rental price.
Lettings activity of property lettings continued to improve in all aspects of retail and office property across the West Midlands for the second quarter in a row.
There has been an increase in the confidence in the outlook for lettings, but people had little faith than they did at the end of 2009 all over the UK. The office rental market experienced the largest increase of confidence with 18 per cent of surveyors having reported a rise rather than an decrease, moving up from minus four per cent the quarter previous. Some of the RICS surveyors voiced their concerns over the potential impact on regional activity of lettings of the public sector employment reductions after the forthcoming election on the 6th May.