Development drops at fastest rate for over two years - decline steepest in London and the South-east
Commercial development activity at the end of 2011 fell at its fastest rate in nearly two years, driven by a sharp decline in activity in London and the South-east, new analysis has revealed.
Development activity nationwide fell 18% in December, coming after a 15% decline in the month before, according to analysis from property agency Savills. The agency said it had not recorded a decline this steep since February 2009.
The South-east experienced the most drastic change of fortunes falling 12% in December, compared with a flat November.
Meanwhile, London activity fell 10% after having been the only region to grow between July and September 2011.
Michael Pillow, head of building consultancy at Savills, said: 鈥淟ower-risk and more fundable projects are going to remain most popular until economic growth becomes more dependable.鈥�
The survey also found developers pessimistic about the outlook for the next three months with the index of sentiment scoring -7.
However, they were less pessimistic than in November when the index scored -14.
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