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        London property market ‘continuing to hold up’

        London property market ‘continuing to hold up’

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          The UK economy has struggled over the last couple of years, with the double-dip recession predicted for some time by many commentators.

          Businesses and households across the UK are experiencing continued difficulties – particularly in the regions away from London.

          To some extent, the capital has avoided the worst effects of the economic downturn, despite the losses incurred in the City over the last few years.

          Put simply, London remains an attractive place to do business. And as such, there is no shortage of companies around the world eager to set up a base in the UK capital.

          London remains one of the elite trading centres, highly regarded by businesses and investors around the world.

          This creates high – but crucially, stable – demand for bespoke commercial property in the capital, insulating the market from the worst effects of the recession.

          Ed Stansfield, property economist at Capital Economics, said London attracts “a lot of interest” from both investors and occupiers on an international basis.

          He said the markets have continued to perform “relatively well” despite the turbulence witnessed elsewhere.

          “Although there are likely to be a lot of further weakness over the next couple of years, there doesn’t seem to be much let up in the rate at which new space is being constructed in central London,” Mr Stansfield claimed.

          In a separate interview earlier this summer, the commentator said the development pipeline is looking “stronger than it has done for some time”.

          “Despite the fact that the macroeconomic environment has deteriorated, the problems facing the banks have deteriorated and all the eurozone issues are rumbling on causing massive amounts of uncertainty, it does seem as though developers are pressing ahead with projects,” he stated.

          “We think that we will see an improvement in supply over the next couple of years.”

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