Property managers rush to central London as UK market stabilises

Property fund managers are flocking to the central London office market in the expectation the capital will outperform other regions, as the UK property sector's recovery since the financial crisis begins to stabilise.

According to managers in the sector, the rally the UK property market has experienced over the past 12 to 18 months is now coming to an end. Investors will have to search harder for areas of growth and central London offices and retail spaces are being targeted as one such area. “We bought a central London asset last year and have seen good returns on that. Generally we have been focusing on London and the South East,” said Gerry Ferguson, manager of the £2.3bn SWIP Property Trust. “The UK market is quite polarised and differentiated on a geographical basis. London is doing reasona...