London’s property market received a lift yesterday as new figures pointed to surging demand for West End retail sites, while FTSE100 heavyweight Landsec completed a major office deal.

Estate agent Savills reported that investment in central London retail locations is set to exceed £2bn this year – the highest level since 2018.

The news comes as Oxford Street, long regarded as the capital’s premier shopping destination, continues its fightback following the departure of several big-name retailers and a wave of low-grade candy shops and vape outlets.

Separately, Landsec confirmed it had agreed the sale of Queen Anne’s Mansions – an office block currently occupied by the UK’s Ministry of Justice – for £245m to billionaire hotelier Surinder Arora.

The UK’s real estate sector has endured a challenging run in recent years.

Traditional bricks-and-mortar retail has been hit hard by the shift to online shopping, a trend that accelerated sharply during the pandemic.

Retailers have also been squeezed by what many see as an onerous business rates system, while Labour’s increase in employer National Insurance contributions has added to cost pressures.

Shares in Landsec slipped 1.1pc yesterday, closing down 6p at 568p.