SMALL to medium-sized property businesses across the North East are more positive about the future of the sector than in 2011, with almost a quarter expecting an increase in market activity in the next six months, according to a new report.
The latest quarterly Property Matters report reveals a distinct contrast with last year’s results, with property business owners inLondonbecoming less confident in theUKmarket and regions such as the North East showing a slight swing towards optimism.
The report comes at a time when Lloyds TSB Commercial’s lending toUKproperty SMEs has risen by nearly 10% in the North East.
Despite the slight increase in positivity across the North East, respondents were split in their opinions on activity in the region, with 14% expecting activity to slow and 63% predicting that activity will stay at current levels. This gives the region a net confidence score of +9. The report looks at the confidence of SME property businesses throughout theUKbased on their attitudes to investment and views of sources of funding.
It reveals that, even though expectations for the regions have improved, property business owners are more cautious about the recovery of the widerUKmarket.
More than half in the North East believe activity will remain static, and the rest are split between improvement and decline.
Mike Gascoigne, relationship manager for Lloyds TSB Commercial in the North East, said: “While there is more overall positivity than 2011, the overwhelming message is that SME business owners are not expecting a massive swing towards a vibrant market.