Property market's stability is encouraging, says Lloyds
Property professionals in the Midlands are expecting to see the region’s real estate market plateau during the remainder of the year. That’s according to the Lloyds Banking Group’s commercial property confidence monitor, which suggested recent significant rises in activity could signify a more stable short term future.
Figures from the bank’s latest report show more than half of respondents (54 per cent) in the Midlands expect little or no change in the market’s performance over the next three to six months. However, of those that are expecting a change, 33 per cent are expecting the property market to deteriorate, with just 13 per cent predicting an improvement.
Forty-six per cent of the property companies surveyed said they expect their own business’s performance to remain static. A further 27 per cent over a quarter believe their firm’s performance will improve. However, a fifth said they expected some deterioration in performance before the year is out.
Ian Martin, head of the Midlands for Lloyds Banking Group’s corporate real estate team, said: “While the improvements we’ve seen over the last 12 months are encouraging, the recent cooling-off has meant the market in the Midlands has reached a plateau.
"But this is also encouraging. An over-heated market would have inevitably led to a downturn, whereas a stable period will build confidence which presents its own opportunities, particularly when the appetite for investment remains.
“As market conditions evolve, honest and open dialogue between property firms and their banks is more important than ever. That’s why we’re working closely with our customers to help them refine their strategic vision for their businesses and identify how we can best support them.
"We will continue to help well-managed property businesses take advantage of future opportunities as the longer term fundamentals of the market start to improve.”
