Jones Lang LaSalle's Q3 Central London Market Report published this week says that demand for space in London's West End rose 2% in the last three months.

Jones Lang LaSalle's Q3 Central London Market Report published this week says that demand for space in London's West End rose 2% in the last three months.

Despite the impact of the credit crunch which has bitten particularly hard in the UK, demand is now 12% higher than at the end of last year. JSL says that the service sector is underpinning the market, accounting for 42% of overall demand in terms of floor space, against 17% for the banking and finance sector.

With over 102,000 m2 let in the third quarter, the year to date figure for 2007 is now 60,000 m2 ahead of the equivalent period last year. West End supply continues to tighten and there is enough demand in the market to justify further increases in prime rents to £115 per sq ft (EUR 1,786 per m2), or 28% over the last 12 months. With September being a very slow month for transactions, most of the investment activity in the West End occurred in July and August. Nevertheless, the quarter saw investment volumes of over £1.6 bn (EUR 2.3 bn) with the year to date figure standing at £5.05 bn (EUR 7.29 bn), compared with £6.07 bn (EUR 8.76 bn) for the whole of 2006.