There was a 1.7% change in the All Property Rent Index from the previous quarter, with increases in all three sectors. This is reflected in the annual figure of 3.8%, which is higher than the year ending November 1995 (2.8%) or February 1996 (2.5%) and more than the expected rate of inflation (2.4%).
In the retail sector, all areas achieved an increase on the last quarter. However, increases were marginal, exemplified by the fact that the largest increase in this quarter was 1.8%, compared to the previous quarter's high of 4%. Over the year, Central London, as in the previous two quarters, easily achieved the highest increase. The London, North, Scotland and Yorkshire areas were the only ones to achieve growth above 2%. Wales was the only region to experience a decrease over the year, though the change was marginal, at -0.5%.
The Office sector experienced a growth of 2.6% from February 1996. Just over one third of the office regions showed no change in rental values. Scotland was the only region for which a decrease was recorded. The West End and Holborn & Marylebone clearly showed the two largest increases over both the quarter and 12 months. In the year to May, the West End produced growth of 19.7%. Outside London, changes over the two periods were relatively marginal.
The industrial sector has shown a change of 0.8 % on the previous quarter. Nearly two thirds of the regions showed no change in this quarter. The North West was the only region to experience a lower rate of rental value growth than in the previous quarter. Over the 12 months, Wales showed the highest increase, at 5.4%. Scotland's decrease, of 2.8%, was the largest in any sector, over the 12-month period.
Amendments to Data
There have been some re-calculations resulting in modifications in to ,.historic data. The areas affected are All Property (August 1995 to February 1996), All Retail (May 1995), All Offices (August 1995 to February 1996), All Industrial (August 1995 to February 1996, Retail: South West (May 1991 to February 1996), North West (February 1992 to February 1996) and West Midlands (November 1994 to February 1996), Offices: South West (November 1991 to February 1996), West Midlands (May 1991 to February 1996) and Wales (August 1994 to February 1996), Industrial: South West (May 1991 to February 1996) , North West (May 1994 to February 1996) and West Midlands (August 1994 to February 1996). A list of these changes will be published in the near future. In the meantime, please contact the Investment Research should you require the updated figures.
Rent Index - Current Prices
% Change
Qtr Annual pa
Feb 96- May 95- May 91-
Nov 95 Feb 96 May 96 May 96 May 96 May 96
All Property 401 404 411 1.7 3.7 -3.6
Shops 560 564 569 1.0 2.2 -1.0
Offices 313 316 324 2.6 6.2 -5.8
Industrials 339 340 342 0.8 1.3 -2.9
Equity Dividend 653 667 690 3.4 10.4 7.4
Rent Index - Real Terms
% Change
Qtr Annual pa
Feb 96- May 95- May 91-
Nov 95 Feb 96 May 96 May 96 May 96 May 96
All Property 123 124 124 -0.3 1.3 -6.2
Shops 172 173 172 -1.0 -0.3 -3.7
Offices 96 97 98 0.6 3.6 -8.4
Industrials 104 104 103 -1.2 -1.1 -5.5
Equity Dividend 201 205 208 1.5 7.8 4.6
Rent Index - Regional
Nov 95 Feb 96 May 96
Shops
All Shops 560 564 569
Central London* 536 558 566
Inner Sub London 464 473 477
Outer Sub London 497 503 511
Suburban London 484 491 498
London 516 529 537
South East 569 571 577
South West 553 555 559
East Anglia 718 717 720
East Midlands 451 455 455
West Midlands 707 706 715
Wales 732 733 735
North West 560 561 571
Yorks & Humbs 467 477 482
North 566 576 579
Scotland* 520 521 526
% Change
Qtr Qtr Annual pa
Nov 95- Feb 96- May 95- May 91-
Feb 96 May 96 May 96 May 96
Shops
All Shops 0.7 1.0 2.1 -1.0
Central London* 4.0 1.5 9.7 2.9
Inner Sub London 1.9 0.9 4.1 -2.4
Outer Sub London 1.2 1.6 2.7 -2.2
Suburban London 1.4 1.5 3.1 -2.3
London 2.5 1.5 5.9 -0.2
South East 0.5 0.9 1.3 -2.2
South West 0.4 0.7 2.0 -0.3
East Anglia -0.2 0.4 0.6 -1.0
East Midlands 0.8 0.1 1.2 -1.9
West Midlands -0.1 1.2 1.3 -1.6
Wales 0.2 0.2 -0.5 -0.9
North West 0.2 1.8 2.0 1.2
Yorks & Humbs 2.0 1.2 3.2 -1.7
North 1.7 0.5 2.7 0.0
Scotland* 0.2 1.0 4.0 1.8
* 9.14m (30 ft) Zone A. All other regions 6.1m (20ft) zone A.
Nov 95 Feb 96 May 96
Offices
All Offices 313 316 324
West End 399 413 440
Holb/M'bone 303 308 329
Central City 274 274 280
Fringe city 285 285 285
Central London 319 322 335
Suburban London 293 294 297
London 306 310 320
South East 333 335 338
South West 598 596 602
East Anglia 318 316 316
East Midlands 363 363 363
West Midlands 705 705 705
Wales 417 417 432
North West 457 458 459
Yorks & Humbs 372 372 372
North 269 269 269
Scotland 454 454 450
% Change
Qtr Qtr Annual pa
Nov 95- Feb 96- May 95- May 91-
Feb 96 May 96 May 96 May 96
Offices
All Offices 0.9 2.6 6.1 -5.8
West End 3.3 6.7 19.7 -7.6
Holb/M'bone 1.6 7.0 14.4 -10.7
Central City 0.0 2.4 2.4 -6.6
Fringe city 0.0 0.0 0.0 -10.9
Central London 1.2 4.0 8.6 -8.0
Suburban London 0.5 0.9 2.0 -4.6
London 1.1 3.5 7.5 -7.4
South East 0.7 0.8 3.6 -4.1
South West -0.3 1.1 -0.8 -3.3
East Anglia -0.6 0.0 -1.2 -4.8
East Midlands 0.0 0.0 2.6 -1.2
West Midlands 0.0 0.0 1.5 -2.7
Wales 0.0 3.6 3.6 -1.7
North West 0.2 0.2 2.5 -0.8
Yorks & Humbs 0.0 0.0 0.1 -0.0
North 0.0 0.0 4.0 -0.0
Scotland 0.0 -0.9 -1.9 -0.3
Nov 95 Feb 96 May 96
Industrials
All Industrials 339 340 342
London 369 369 369
South East 399 400 406
South West 396 396 396
East Anglia 369 369 369
East Midlands 368 374 379
West Midlands 354 354 354
Wales 295 295 295
North West 318 318 315
Yorks & Humbs 253 254 259
North 253 253 253
Scotland 293 293 293
% Change
Qtr Qtr Annual pa
Nov 95- Feb 96- May 95- May 91-
Feb 96 May 96 May 96 May 96
Industrials
All Industrials 0.1 0.8 1.3 -2.9
London -0.2 0.0 -0.4 -3.9
South East 0.1 1.6 2.4 -2.0
South West 0.0 0.0 0.2 -3.8
East Anglia 0.0 0.0 0.0 -3.7
East Midlands 1.5 1.5 3.0 -4.0
West Midlands 0.0 0.0 3.7 -3.3
Wales 0.0 0.0 5.4 -4.7
North West 0.0 -0.8 -0.8 -0.4
Yorks & Humbs 0.5 2.1 2.6 -7.2
North 0.0 0.0 0.0 -2.2
Scotland 0.1 0.0 -2.8 3.0
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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