Reported on Tue, 18 Apr 2006

Commercial properties and commercial mortgages in the UK are maintaining their attractiveness to investors, claims a new report.

The quarterly construction survey by the Royal Institution of Chartered Surveyors (Rics) found that 23 per cent more chartered quantity surveyors revealed an increase in activity compared to those reporting a decrease – a rise of three per cent compared to the final quarter of 2005.

David Stubbs, economist for Rics, explained that the growth in the construction industry was being supported by the strengthening of the commercial property, commercial mortgages and private house building markets.

He said: "Gathering strength is evident in several areas of the industry with growth in the housing sector the strongest in almost two years as buyer activity has improved.

"Continually rising commercial property values are spelling larger profits for developers, propelling a strong rise in workloads for the sector. With competitively priced overseas labour, the Olympic effect and government spending plans likely to bring a further boost, next year is looking rosy for many construction companies."

Mr Stubbs also revealed that labour and skills shortages are approaching an historic all-time low, with London and the south-east the best catered for in terms of construction skills.

Investors looking to benefit from the burgeoning commercial property industry could take out a commercial mortgage.

© Adfero Ltd

Return to news index