Property activity to dampen, suggests report
More than 40 per cent of Midlands businesses expect activity in the property sector to decrease over the next year. That's according to the latest confidence monitor from Lloyds Bank Corporate Markets.
Just a fifth (20 per cent) of the region's businesses said they expected activity levels to rise, with 37 per cent predicting they will remain static.
The results are concluded from the latest commercial property confidence monitor from Lloyds Bank Corporate Markets in association with the Investment Property Forum.
Despite a large proportion of Midlands' companies expecting a slowdown in activity in the sector, the result is a marked improvement on the previous quarter's survey which reported 65 per cent expecting a decrease.
House building and leisure sectors are tipped to be the best performing commercial property sectors in the coming three to six months by 42 per cent and 20 per cent of Midlands-based respondents respectively.
In-town retail and distribution/warehousing received the lowest votes of confidence – zero - in the region.
Ian Martin, regional head of corporate real estate for Lloyds Bank Corporate Markets, said: "It's encouraging that the regions are becoming less negative in their outlook for commercial property. The Midlands market, although not as positive as some regions, is exhibiting a very stable outlook which is more promising than at this time last year. I suspect respondents realise that this is not a rising tide lifting all boats.
"There is value out there but careful stock selection of the right location and sector is paramount. A rise of activity in London is fuelling competition and investors are now starting to look at other markets outside of the capital where value can be derived, leading to early signs of a turnaround in confidence in regions such as the Midlands."
