Commercial Finance Specialists

Uncertainty in the economy is restraining demand for commercial development assets.

A leading real estate agent has claimed that uncertainty still surrounds the regional commercial development market.

Research from CB Richard Ellis has indicated that the City of London is the only UK region to record positive rental growth, according to the Birmingham Post.

Rental growth remained flat or negative in other areas of the UK, as did prime yields.

CB Richard Ellis' head of regional office agency Ashley Hancox told the publication that it is the uncertain short-term economic outlook that is holding back property investment firms.

"It will require clearer signs of economic recovery for rental increases to become more widespread.

"Partly because of this, investors remain strongly focused on core prime properties," she said.

Ms Hancox went on to say that in light of the public spending cuts announced by the government, recovery in the sector is highly dependent on private sector confidence.

Consultants Knight Frank recently claimed that the fall in demand for UK commercial property is simply a case of the market "pausing for breath" ahead of further growth.

Posted by Tess Nelson