With most business sectors, government cut-backs will affect the property market, most noticeably on retail and office rentals.
Serviced Offices Mayfair accepts the property industry avoided any increases in tax in the recent emergency budget however we fear this is because there are anticipated difficult times to come.
According to the Telegraph the civil service occupies the equivalent of 155 office blocks. The landlord Land Securities is reliant on the UK Central Government as its biggest tenant. Land Securities has 9.7 million sq ft of office and retail accommodation in Central London with approximately 50,000 people working in offices owned or rented by them alone.
The Labour government had already begun the process of saving £1 billion in property costs. But the chief executive of Telereal Trillium however believes these cuts will increase closer to £5 billion.
In hard times commercial property rents will be hit hard by the resulting job losses and thus further increase the amount of vacant space in Central London. This too will impact on landlords and their confidence which will cause
This will further create a commercial property market which will be supportive for those who are looking for new offices.
Contact Serviced Offices Mayfair today for professional property advice.