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Time line
Time line

The 1964-1976 London Office Market Cycle

  • Politics / Policy
  • Real Estate
  • Economics / Finance

Click on one of the events below
to start exploring the timeline

October 1964

Labour Government assumes office - introduces policies to discourage
developments in London; regional incentives encourage relocation to suburbs

Credit: Wikipedia Commons
x

March 1966

Labour Party wins General Election - Harold Wilson becomes Prime Minister

Credit: Wikimedia Commons
x

July 1967

Section 123 of Companies Act facilitates growth of secondary (fringe) banks

x

June 1970

Conservative Party wins election - Edward Heath becomes
Prime Minister

Credit: Leonard Bentley from Iden, East Sussex, UK - Downing Street. via Wikimedia Commons
x

1970

Conservative government relaxes building regulation & introduces tax policies
to encourage new construction

x

January 1971

Cedar Holdings floated on LSE, valued at £8 million

Credit: Flickr, Tjeerd Wiersma
x

September 1971

Competition and Credit Control plan removes lending ceilings and reduces
reserve ratios

x

January 1972

Seven-week miners' strike begins

Credit: Wikipedia Commons
x

November 1972

Commercial rents temporarily frozen with wage and price freeze

x

December 1972

City prime office yields trough at 5.00%

x

March 1973

Government budget confirms 5% growth target to mid-1974

Credit: Leonard Bentley, Flickr
x

June 1973

Cedar Holdings raises £60 million in short-term deposits

x

July 1973

Bank of England raises Minimum Lending Rate (MLR) to 11.5%

x

November 1973

Minimum Lending Rate (MLR) raised to 13%

x

November 1973

Oil price shock accelerates inflation.

Credit: Dan Mitchell, Flickr
x

November 1973

London and County Securities in difficulties - shares suspended on LSE

Credit: Flickr, Tjeerd Wiersma
x

December 1973

Supplementary Deposit Scheme ("corset") limits availability of credit

x

December 1973

Cedar Holdings £72 million rescue package agreed

x

December 1973

Bank of England launches "Lifeboat" (lender of last resort)
operation

x

December 1973

Unemployment rate 2.2%, bank lending to private sector grew 33%
during 1973

x

January 1974

Three-day week introduced to conserve electricity
(phased out 7 March 1974)

Credit: Leonard Bentley from Iden, East Sussex, UK - Downing Street. via Wikimedia Commons
x

February 1974

General Election - Labour Party (Harold Wilson) forms minority government

Credit: Wikimedia Commons
x

February 1974

Miners' four-week strike ends following 35% pay offer from
new Labour government

Credit: Wikipedia Commons
x

May 1974

Stern Group in difficulties; 'Cork's dam' scheme to avoid fire-sale of assets

x

June 1974

Stern group collapses with liabilities of £100 million

x

October 1974

General election - Labour secures 3 seat majority

Credit: Wikipedia Commons
x

December 1974

City prime office yields peak at 7.25%

x

January 1975

FT30 Index hits 30-year low (73% below peak) - recovers 64%
in next 15 days

Credit: Flickr, Tjeerd Wiersma
x

February 1975

"Corset" discarded; interest cap on small deposits removed

x

March 1975

Lifeboat support peaks at £1.285 million

x

June 1975

City office capital values trough, 50% below peak

x

Economic and Real Estate Backdrop 1964 - 1976

Real Estate
Economy

Annual UK GDP (1964-1976)

Annual % Change

Source: Office for National Statistics

Bank of England Base Rate (1964-1976)

Source: Bank of England, Office for National Statistics

UK CPI Inflation Rate (1964-1976)

Source: Bank of England, Office for National Statistics

Real Rents in the City of London (1964-1976)

Inflation Adjusted Index (1964 = 100)

Source: JLL, 2015

Real Capital Values in the City of London (1964-1976)

Inflation Adjusted Index (1964 = 100)

Source: JLL, 2015

Prime Yields in the City of London (1964-1976)

Source: JLL, 2015