UK shop vacancies rise again in post-Christmas lull

Over 10% of shops on the UK's high streets are now vacant or available to lease, according to the latest Retail Availability survey from real estate adviser Cushman & Wakefield.

The figure of 10.7% - recorded at 1 February - is a marginal increase of 0.4% over the previous three months when availability fell for the first time in 2009 by 2.3%. That figure was boosted by temporary lettings in the run-up to Christmas. However, the new rate is almost 2% below the peak recorded in August 2009 of 12.6%.

London remains the most polarised regional market with the centre of the capital recording one of the lowest national availabilities of only 7.9% whilst the suburbs recorded the highest at 17.4%. Outer London now has the highest percentage of shop units linked to administration at 5.75%, an increase of 0.4% increase in the last three months. Many regional centres in outer London have also been affected by the opening of Westfield London and the expansion and improved retail offering of Brent Cross.

Peter Mace, head of central London retail, Cushman & Wakefield said: 'The high number of tourists that continue to visit London to capitalise on the weak pound have helped to reinforce central London’s resilience. Prime high-profile streets remain much in demand with Regent Street, for example, currently 100% full and only 1.7% vacancy on Old and New Bond Street.'

Overall, the Midlands has seen the highest increase in availability at 1.7% to now stand at 12.1%. Birmingham still has the highest availability in the region with Nottingham the lowest at 8.7%. The region however has among the lowest UK vacancy rate because of retailer administrations, evidence that it has now seen the worst impact of the recession on its central retail area.