Rents in London may fall by 50% over the next two years, according to King Sturge’s latest research.
Regional cities rental cycles will continue to be less volatile, the latest UK Office Property Market report from King Sturge said.
It expects rents to fall by around 10% in the main six regional centres in the UK over the next two years as the regions were ‘last into the boom’ so do not have as far to fall in terms of rental value.
Mark Bourne, head of London office agency, said: ‘The correction will be felt more greatly in central London than in the regions, having experienced a far greater growth cycle over the last 3-4 years.’
However take-up fell by 30% last year across the whole of the UK, the report said – but occupiers who do want to move are in a strong position.
Jeremy Richards, head of regional office agency at King Sturge said: ‘For occupiers across the UK, this year offers the widest range of choice and the most attractive incentive packages for many years. Rents are lower than a year ago and in some cases it’s possible to obtain as much as 2 to 3 years rent-free.’