London has a history dating back over 2,000 years and with 8 million residents, it is one of the most diverse and vibrant cities in the world. Greater London has 33 distinct boroughs, each with its own individual character, which attracts a range of different residents, for a blend of different reasons. In this borough by borough report we look across all 33 from a housing market perspective. We look at a range of metrics that are of interest to those living, or thinking of living, in the area and offer a brief overview of each borough, including house prices, transport links, population density and amenities.
Second month of rental value growth for high street shops Total return for all UK commercial property was 1.0% in April, with capital value growth of 0.5% over the month. High street shops in South East saw some improvement in rental values, recording two consecutive months of positive rental value growth. Year-to-date returns confirmed solid performance across the UK. Aggregated total returns for All Property were recorded at 4.1% for the last four months and are in line with the CBRE forecast for 2015.
Prime rents close to the pre-crisis peak. Prime rental values continued to increase in Q1 2015, recording 1.2% growth over the quarter. Prime yields fell by an average of 11 basis points over the quarter to stand at 5.5% at the end of Q1 2015. London, South East and some parts of the North contributed most to overall office performance. However, in terms of yield the gap between offices in London and in the rest of the UK has narrowed slightly. The industrial sector is seeing strong rental value growth across the country. However, the sector saw very little yield shift recorded in most regions in Q1. Rental growth and yield shift in high street shops was mainly in Central London.
Take-up in Central London for April 2015 was 948,600 sq ft, 30% lower than the previous month. Central London availability fell to 10.4 million sq ft in April, representing a 5% monthly fall. Under offers increased by 14% in April, ending the month at 3.6 million sq ft. The largest deal to complete in April 2015 was a 40,700 sq ft letting to The Office Group at Block 2, Angel Square, EC1.
Acute hospital yields compressing as available investments snapped-up under competitive bidding with UK institutions to the fore. With no shortage of institutional investor demand, a lack of premier stock is holding back further falls in prime yields in the care home sector. Good news stories for the sector continue as HC-One acquires Meridian Healthcare and is on the acquisition trail with strong backing following its successful work-out of the NHP ex-SX portfolio.