This time last year the economy in the UK was looking uncertain, having not long avoided a triple-dip recession. However, in the London commercial property market faith overcame caution, and with the instability in Europe, the UK capital was soon to be seen as the safe place to invest by overseas investors, including state and pension funds. Analysts see no reason for this pattern to change any time soon.

While the news and forecasts over recent weeks have focused on improvements in the UK economy, we are gradually seeing evidence on the ground that this is the case. While the numbers of start-ups requiring space – whether leased or serviced offices – are noticeably on the up, also of note are the businesses that are taking the confident step to relocate. 

2013 has been referred to as the year of the start-ups and here at Morgan Pryce we have worked alongside many start-up companies in assisting them in their office acquisition. Now it seems that 2014 is set to be a different kind of year, where these start-up businesses will now be proving their worth and this year is looking to be the year of the growing business.

While 2013 held much good news in terms of the property market, one controversial aspect was the introduction by the government of a change to the planning laws. This played out during much of last year, eventually being passed and allowing an expansion of the permitted development legislation whereby no planning permission is needed, in some areas, to change a property from office use to residential use – a change welcomed by many landlords and one which enables them to take advantage of higher residential property prices. 

If the word on the property-market street is to be believed, 2014 is set to look good for investors in the UK capital, continuing a trend that just got stronger during 2013.  While 2012 economically was still suffering somewhat from the effects of the worldwide financial crisis, last year saw London go from strength to strength, with new areas rising in popularity and with incoming international investment helping to boost both take-up and rental prices. 

Based on the performance of commercial property over the last twelve months, 2014 is looking optimistic in terms of the UK commercial property sector. Morgan Pryce recently reported on London’s high – and increasing – take-up and rental rates, and given that the UK’s economy is at the beginning of its recovery, positivity should continue into next year.

Economic forecasters have indeed been kept on their toes during the last few years. It would be interesting to see who would have predicted over a 9% rise in commercial property rents over the last twelve months. These are precisely the figures provided by Knight Frank, which shows that rents in London City have reached as much as £60 per square foot. 

This year Morgan Pryce has run several articles focusing on Chinese investment in London, not only in terms of purchasing buildings already in existence, but investing in new schemes such as a Chinese financial district in the dockland area.  Figures arising from research by carried out by Jones Lang LaSalle indicate that investment from this booming Far East economy into London’s property market has increased by over 1500% during the last three years.

The rise of the TMT sector post-recession has seen a number of changes to the property market, not least the areas of the market it has developed into. Clerkenwell, Shoreditch and further east in the fringes of the City are the areas the TMT sector is calling home, with the likes of Google pushing further north into Kings Cross to develop a once seedy, uninviting area into a new flourishing part of the market.

The face of Soho’s Walkers Court is set to change, after the passing of plans by Westminster Council, despite myriad objections from local residents, societies and businesses.