Developers 'suffering from lack of confidence'

Office design news from Morgan Lovell

Published on 20-11-2008

Developers are suffering from a lack of confidence in their finances due to the ongoing credit crisis, it has been alleged.

Anthony Duggan, head of research at Drivers Jonas, said that many developers are now finding it difficult to borrow money from banks and are, therefore, under-financed to take out large development projects.

He commented: "Developers all struggle to get finance to build the buildings [from] the banks due to the credit crunch."

Furthermore, he stated that a downturn in interest now means that many developers are unsure as to whether they will be able to lease their properties once they are completed.

According to Drivers Jonas' Crane Survey Central London, total construction activity has fallen by 20 per cent in the last six months.

Furthermore, the study recorded just four new starts for projects in the last half year - down from 20 in the same period last year.