The All Property Rent Index rose by 1.1% over the quarter, which is marginally higher than the previous figure. This is reflected in the annual figure (4.9%) which has increased steadily since February. It now shows growth above the expected annual rate of inflation to November (2.1%). Indeed, the inflation-adjusted quarterly increase is the largest recorded since 1990.
Retail rental value growth was 0.9% over the quarter. Growth is more concentrated in London than in the previous two quarters as most regions experienced marginal growth. East Anglia and Scotland are the exceptions, with the latter showing the highest regional growth. Central London's quarterly increase (4.4%) was its largest since 1990.
Unlike the Retail and Industrial sectors, the quarterly growth of Office rents (1.8%) is above August's figure. Provincial growth continues to lag behind the Capital, though West Midlands, Wales and East Anglia showed their strongest quarterly growth since 1995. Fringe City provided the sector's highest quarterly growth, however, this sub-market's annual increase was modest relative to others in the Capital. As in the previous two quarters, Scotland is the only region to return a quarterly decrease, though November's fall is the smallest of this year.
The quarterly growth of Industrial rents, at 0.3%, remains unchanged from August. Rents in Wales were unchanged following two quarters of strong growth. Signs of revival are apparent in Scotland and the North West. The former produced its first quarterly increase for two quarters and the latter avoided a decrease for the first time since February. East Midlands is alone in showing a regional decrease, which is its first since February 1995.
Rent Index - Current Prices
May 96 Aug 96 Nov 96
All Property 415 420 424
Shops 569 336 580
Offices 331 336 342
Industrials 343 344 345
% Change
Qtr Annual pa
Aug 96-Nov 96 Nov 95-Nov 96 Nov 91-Nov 96
All Property 1.1 4.9 -1.5
Shops 0.9 3.5 3.5
Offices 1.8 8.0 -2.1
Industrials 0.3 1.5 -2.1
Equity Dividend 2.3 11.0 7.6
Rent Index Real Terms
May 96 Aug 96 Nov 96
All Property 125 126 128
Shops 172 173 175
Offices 100 101 103
Industrials 104 104 104
Equity Dividend 208 213 219
% Change
Qtr Annual pa
Aug 96- Nov 95- Nov 91-
Nov 96 Nov 96 Nov 96
All Property 1.3 2.7 -3.9
Shops 1.0 1.3 -2.7
Offices 1.9 5.7 -4.4
Industrials 0.4 -0.3 -4.4
Equity Dividend 2.4 8.6 5.0
Rent Index - Regional
% Change
Qtr Qtr Annual pa
Aug 96 Nov 96 May 96- Aug 96- Nov 95- Nov 91-
Aug 96 Nov 96 Nov 96 Nov 96
Shops
All Shops 574 580 0.9 0.9 3.5 -0.3
Central London* 576 601 1.7 4.4 12.1 4.5
Inner Sub London 481 486 0.9 0.9 4.7 -1.5
Outer Sub London 512 518 0.2 1.0 4.1 -1.5
Suburban London 500 505 0.4 1.0 4.4 -1.5
London 542 555 1.0 2.5 7.7 1.0
South East 581 582 0.8 0.1 2.3 -1.6
South West 563 563 0.6 0.0 1.7 -0.4
East Anglia 744 758 3.3 2.0 5.6 0.3
East Midlands 462 464 1.4 0.4 2.7 -1.5
West Midlands 725 727 1.2 0.2 2.5 -0.9
Wales 741 742 0.8 0.2 1.4 -0.6
North West 576 577 0.9 0.1 3.0 2.4
Yorks & Humber 489 491 1.3 0.4 5.0 -0.7
North 582 586 0.5 0.7 3.4 1.0
Scotland* 527 544 0.3 3.1 4.7 2.5
*9.14m (30 ft) Zone A. All other regions 6.1m (20ft) Zone A
Offices
All Offices 336 342 1.7 1.8 8.0 -2.1
West End 467 482 2.8 3.1 16.0 -2.3
Holborn &
Marylebone 358 365 6.0 1.8 14.6 -4.7
Central City 305 310 2.8 1.7 13.1 -0.9
Fringe City 289 301 0.0 4.3 5.8 -4.9
Central London 359 368 2.9 2.6 13.2 -2.3
Suburban London 303 306 1.3 0.9 4.4 -2.7
London 340 348 2.7 2.3 11.5 -2.4
South East 342 346 1.3 1.3 4.1 -2.3
South West 611 611 1.5 0.0 2.3 -2.6
East Anglia 316 320 0.0 1.2 0.6 -3.9
East Midlands 363 365 0.0 0.6 0.6 -1.0
West Midlands 705 719 0.0 2.0 2.0 -2.2
Wales 435 443 0.8 1.7 6.2 -0.3
North West 460 461 0.3 0.3 1.0 0.2
Yorks & Humber 372 372 0.0 0.0 0.0 0.7
North 269 269 0.0 0.0 0.0 0.6
Scotland 429 428 -4.7 -0.2 -5.7 -1.3
Industrials
All Industrials 344 345 0.3 0.3 1.5 -2.1
London 371 371 0.6 0.0 0.4 -3.0
South East 406 410 0.0 0.9 2.6 -2.6
South West 400 400 0.9 0.0 0.9 -1.6
East Anglia 369 369 0.0 0.0 0.0 -4.2
East Midlands 379 375 0.0 -1.3 1.7 -1.5
West Midlands 357 357 0.9 0.0 0.9 0.4
Wales 321 321 2.5 0.0 2.5 0.7
North West 15 315 -0.1 0.0 -0.9 -2.0
Yorks & Humber 263 264 1.3 0.5 4.5 -0.7
North 253 253 0.0 0.0 0.0 0.9
Scotland 292 293 -0.5 0.2 -0.2 4.1
For further information, contact: Alan Patterson, Head of Investment Research, Tel: +44 (0) 171 629 7666, Fax: +44 (0) 171 409 3016
