Land Securities warns of rent rises

A scramble for office space means the London’s businesses must brace themselves for the “steady march in rent prices”, Land Securities warned today.

The developer of the Walkie-Talkie skyscraper posted a doubling in pre-tax profits to £2.4bn and the chief executive Rob Noel said the UK’s largest listed commercial property company was reaping rewards from an undersupplied market.

“In London there is simply not enough quality office space and we are looking at a steady march in rent prices now,” he added.

The year to 31 March was the culmination of a five-year plan to invest in areas where a shortage of office stock was expected, such as Victoria and the City. During the period, Land Securities agreed deals to let space in Victoria to companies such as Jupiter Asset Management and Gucci’s parent Kering.

Land Securities, which also has stakes in retail assets such as Bluewater, believes the retail market will remain more challenging. Its shares jumped 2.36 per cent to 1342p in early trade.