10 June 2016 | Martin Read
Commercial property consultancy CBRE is reporting further continuing growth in rental values across the UK, up by 0.1 per cent during the month of May.
According to its latest CBRE Monthly Index, capital values grew by 0.2 per cent - a continuation of a trend in place since the beginning of the year.
However, commercial property rental growth was hampered by London's West End and Midtown sectors. Their poor growth of just 0.1 per cent leading overall Central London offices rental values to post their weakest growth - 0.2 per cent - since June 2013.
This compares poorly against the City of London, where office rental values grew by 0.6 per cent in May compared to just 0.1 per cent in both March and April.
CBRE reports commercial rents and capital values continue to grow "in a period of great uncertainty".
Miles Gibson, head of UK research at CBRE, believes that while the London office market has seen some volatility, the market remains fundamentally strong.
He said: "This time next month we'll have a clearer idea of the direction capital values and rents will go in the second half of the year, and a flavour of the pace at which they will get there."