Derwent London PLC on Thursday said occupier demand in London remains good for the right product, despite a reduction in total lettings due to recent political and economic uncertainty.

For the nine months ended September 30, the London-based property investment and development business reported total lettings of £9.0 million, at an average of 13% above estimated rental value for December 2021.

This represented a decrease from lettings of £9.4 million for the same period a year prior, at an average 0.7% above estimated rental value.

For the third quarter, Derwent reported £1.9 million of lettings, and said it had seen a ‘notable increase’ in viewings since the summer, accompanied by ‘encouraging’ letting interest across its portfolio.

Vacancy rates rose slightly to 6.9% at September 30, from 6.5% at June 30, concentrated in recently completed spaces like the Featherstone and White Chapel buildings.

However, rent collection rates improved on the previous quarter, standing at 98% as at September 30.

Derwent also noted recent development progress, including the completion of the Francis House SW1 refurbishment, which has now been handed over to its tenant, Edelman Holdings Inc, and the completion of demolition works at 25 Baker Street W1.

During the period, 80 Charlotte Street W1 was the winner of the British Council for Office’s Best National Commercial Workplace award, which Derwent said recognised ‘both the quality of the overall design and the building’s strong sustainability credentials’.

Looking ahead, Chief Executive Paul Williams said: ‘We have a strong balance sheet and with disposal proceeds in the year to date of £205 million, we are reinvesting in two distinctive West End developments where supply remains constrained.’

Derwent London shares were trading 1.0% lower at 2,202.00 pence each in London on Thursday afternoon.

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