Catherine Rees, Senior Analyst at CB Hillier Parker, said: 'The increase in pre-letting activity is a result of historically low availability forcing occupiers to commit to space currently in the pipeline.'

The level of development starts fell by 45% during the quarter. Rees said this reflected a number of factors, including the economic uncertainty arising out of the slowdown in the USA and the political uncertainty surrounding the date of the UK General Election.

Requirements, on the other hand, were more robust with a fall of just 8% over the first quarter. In the high-tech sector occupier demand is down 37% but this has been counteracted by a 25% increase from the banking and finance sector.

Rees pointed out that current demand still outweighs existing availability by more than four times.

Nick Ridley, Senior Director of West End Agency and Development at CB Hillier Parker, said: 'It would be a mistake to think that the current slowdown constitutes anything worrying in the long term for the Central London market. What we are witnessing is little more than a sensible adjustment of activity to economic circumstances and an altogether more normal market.'

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