KEY FINDINGS

Commercial development activity fell for a third successive month in October.

Public sector activity contracted sharply, with decreases now recorded for eight successive months. However, private sector development ended a two-month sequence of decline, as moderate growth was recorded in October.

Approximately 26% of commercial developers recorded a fall in overall activity in the month, compared to 18% indicating a rise.

The Total Commercial Development Activity Index, a net balance monitoring the overall performance of the UK commercial property sector, posted -8.3% in October, improving from -13.8% in September.

Commenting on the October survey, Michael Pillow, Head of Building Consultancy at Savills said:

“This month saw a recovery in private sector activity, but continued falls in development activity for the public sector. In this age of public sector austerity this trend is likely to be sustained.”