UK retail rents set to `grind to a standstill'

The recovery in the UK retail market will be short-lived, according to a leading firm of chartered surveyors. It says that rents at in-town shopping centres - among the fastest growing sector of the UK market - will be "grinding to a standstill" by the end of next year.

Colliers Erdman Lewis says that even the prime central London market has peaked, including sites at Oxford Street, Mayfair, Knightsbridge and the City of London. These will have very low rental growth from 1999 to 2001, the firm predicted. UK retail sales levels have fallen off in recent months after consistent rises earlier, and there is growing competition from non-property based retail distribution outlets, such as the Internet. With increasing evidence of over-shopping in the Dublin area, landlords must be wondering if similar market conditions are on the way.