Commercial property confidence 'hits new low'

Office design news from Morgan Lovell

Published on 26-11-2008

Confidence in the commercial property has reached a new low, according to figures compiled by the Institute of Chartered Accountants in England and Wales (ICAEW).

LDP Business has reported that sector confidence fell by 12.4 points between Q3 and Q4 of this year in the business continuity management survey to -54.2 - its lowest recorded level.

Michael Izza, chief executive of the ICAEW, said: "Businesses are increasingly worried about how deep and long the recession will be and are now taking steps for a painful slowdown."

Meanwhile, Steve Turner, head of communications at the Home Builders Federation, recently commented that a failure of many banks to lend to the commercial property trade has led to stagnation within the industry in the last few months.

He noted that builders across the UK have felt the pinch of the credit crunch and are finding it difficult to start new projects and secure funding to complete those they already have on their books.