Confidence in the short-term future of the UK’s commercial property market is the highest it has been since 2010, the results of a new survey show.
According to Lloyds Bank’s Commercial Property Confidence Monitor, which is released bi-annually, more than 80 per cent of the UK’s real estate professionals expect the market to grow in the next three to six months, propertywire.com reports.
More than two thirds of the respondents (67 per cent) also said they expect property values to rise during the same period, with regional markets set to follow London’s example. Fund managers were most confident with this prediction, with 92 per cent expecting noticeable increases.
Lloyds Bank’s managing director of mid-markets real estate, Marty Green, said: “The momentum seen in the market over the past 12 months shows no signs of slowing as we continue to see widespread improved confidence in our report.
“The market’s bullish attitude is perhaps best summed up by the reported indifference to a possible rise in interest rates, which could well happen in the next year to 18 months.”
The report’s researchers also questioned businesses about their funding sources. They found that private funding and capital markets are increasing in popularity across the market.
This supports the results of the recent SME Finance Monitor survey, which looked at the short-term financial plans of small businesses across the UK. According to ibtimes.co.uk, 82 per cent of the respondents said they have no plans to apply for traditional bank finance in the next 12 months.
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