The Government has been urged to encourage more property investments outside of London by one MP. Lord Michael Heseltine told prime minister David Cameron that his obsession with the capital must end, in a report entitled No Stone Unturned: In Pursuit of Growth.
In recent years, it has seemed to many that all property investment has been focused around the metropolis, leaving many of the country's regional urban centres, such as Birmingham and Leeds, trailing behind. Lord Heseltine's report claims that other areas of the country must be given the economic power they once had and more must be done to encourage people to invest in property outside of London.
Jones Lang LaSalle has welcomed the new report, with Midlands chairman Jan Thomson claiming that it is certainly a step in the right direction. "Birmingham, along with other major regional cities, has been trying long and hard to dilute the London-centric focus of successive governments on many strategic issues, particularly the need for significant infrastructure investment in roads and airports outside the South-East," she said.
"Perhaps the coalition, which commissioned Lord Heseltine's review, will accept his view that cities such as ours should have much more of a say in the way in which national revenues are distributed, and that the Regional Growth Fund needs increasing significantly."
Nevertheless, investment in commercial property in London is continuing to grow, with figures from the CBRE UK Monthly index noting that in August alone, central offices in the city saw their capital values rise by 0.2 per cent.
Despite been down from July's figure of 0.4 per cent, this percentage bucks the trend across the rest of the country for decline, with a 0.3 per cent fall noted for all property indexes, -0.8 per cent in outer London/M25 offices and -0.7 per cent in the rest of UK offices. In September, central London offices continued to perform well, enjoying monthly total returns of 0.5 per cent and 4.9 per cent total returns in the year to date