Statistics showed some improvement this quarter: rents were stable in the West End and falls moderated in the City; take-up and demand both increased on Q1 and increases in supply were less severe than over the first three months. In addition, the market finally saw an increase in investment volumes and healthy demand for limited investment product drove the first yield compression we have seen since 2006.

These headlines numbers, however, need to be viewed with caution. Significant risks remain to the market and in this report we interpret recent changes and give our view on how these might evolve. In our issue to watch section, we focus on the short term direction of occupier demand.