Savills data shows a scarcity of large-scale trades which has resulted in lower levels of turnover, reflected by the average lot sizes traded to-date year. In the West End the average lot size traded was £31m, and for the City it was £23.3m. However, June saw the year’s first £100m+ transaction completing at Herbal House, 8-10 Back Hill, EC1, with the Yellow Tree Group acquiring the freehold interest of the 114,041 sq ft property.

West End Investment turnover reached £2.0bn, which was up 15% on H1 2023, although remains 40% below the long-term average as a result of the scarcity of larger sized transactions. Despite this there continues to be strong demand for West End assets as the number of assets trading during H1 was up 30% on the 5-year average.

UK Purchasers, focused on smaller assets, dominated investment activity during H1, with 33 of the 45 assets acquired by UK purchasers having been sub £25m. These purchases accounted for 44% of H1.

Richard Garside, Head of Central London Investment, Savills, said: “A lack of larger £100m plus trades in H1 has depressed volumes significantly but it’s reassuring to see that the number of transactions creeping back up and a greater depth of interest in the stock that is currently available. With interest rates expected to continue declining, the ongoing strength of the occupational market and with the general election behind us, London becomes an even more attractive city for investors, and this should result in a more positive second half of the year.”