Shaftesbury: West End property 'flourishing'

London landlord Shaftesbury today said business was booming in the West End despite the fragility of the economy's recovery.

The firm, which owns shops and restaurants in Carnaby Street, Chinatown and Covent Garden, said it benefited from "excellent trading" over Christmas and New Year when an "unprecedented" number of visitors flocked to the capital and record takings at theatres, cinemas and museums boosted trading for tenants in its three "villages".

Jonathan Lane, Shaftesbury's chief executive, said "healthy tenant demand" meant it continued to secure higher-than-expected rents — something few property firms are able to achieve.

"This year's general election, and the budgetary measures which are likely to follow, are contributing to uncertainty and instability in the UK economy," he said.

"In contrast, because of its unique characteristics, the economy of the West End continues to flourish, evidenced by continuing strong trading and tenant demand across each of our locations."

Mike Slade, chief executive of property firm Helical Bar, said the London office market is also recovering but warned that rents are still falling because of weak demand.