Shop owners in an area of west London have seen their business rents rise by nearly 400% over the past decade, new research reveals.
Data from property advisors CRE Colliers shows retail rents in Westbourne Grove have rocketed by 387.5% during the last 10 years.
In 1995, shops could be rented for £40 per square foot. Today, retailers pay £195.
Over the past decade, the area has become home to a wealth of designer boutiques, gourmet food shops and art galleries making it one of the most fashionable parts of the Capital.
Top British fashion designer Paul Smith has a store there as does luxury handbag business Mulberry.
CRE Colliers' research - which analysed prime shop rents across the UK - found Westbourne Grove has experienced the highest rise over the past 10 years.
Other areas of London - Neal Street in Covent Garden, Bishopgate and Islington - took the second, third and fourth spots.
Unsurprisingly, central London is the UK's most expensive shopping area by a considerable margin. On Brompton Road, for example, prime retail spaces cost £520 per square foot.
Across the UK, rents rose by an average 4% in the 12 months to May 2005. The biggest hikes occurred in small towns rather than famous shopping locations.
Gainsborough in Lincolnshire saw prices soar the most with a 60% increase to £40 per square foot. In second place was Newton Aycliffe in Durham where rents increased by 40% to £35 per square foot.
Dr Richard Dodge, author of the report, said: "Significantly most of the top performing centres over the past 12 months have been relatively small towns, which confirms that the best rental growth has been achieved at the lower reaches of the retail hierarchy.
"This suggests that those investors seeking good performance should focus on the smaller towns around the country; not only are these centres more affordable, but they also appear to offer the best prospects for good percentage rental growth coming off a low base."
