Property development outlook turns negative
Published: 09 August, 2010
LONDON: The outlook for UK commercial development activity over the next three months turned negative for the first time since July 2009 according to Savills' Total Commercial Development Activity Index.
The report issued today blamed lack of funding and concern over public sector demand for the fall..
Developers surveyed last month feel most pessimistic about new building activity for offices, followed by retail and leisure properties.
Michael Pillow, head of building consultancy at Savills, said: "A general collapse in expectations for the UK economy on the back of public sector austerity has clearly washed over into the development market,"
Government spending cuts have added to the sector's problems of unpaid commercial mortgages and the reluctance of banks to lend. Pillow said: "We expect to see further caution about the future until the full details of the spending review are announced in October."