Activity in commercial property development falling at fastest rate in Savills survey's five-year history

Savills has released research showing a 鈥渞ecord rate of decline鈥� in UK commercial property development.

The study, which forms part of the property consultant's monthly commercial property development research, found that work on both public- and private -sector projects fell at its sharpest rate in the survey's five-and-a-half-year history.

Data from August also indicated a month-on-month reduction of total activity at 42% of commercial developers.

The Total Commercial Development Activity Index showed the resultant net balance as falling to minus 37.8%, from minus 33.8% in July, highlighting a new record rate of decline.

The group said that the August data suggests commercial property developers remain highly pessimistic about the three-month outlook because of 鈥渦nfavourable bank lending conditions鈥� and a 鈥渨idening domestic downturn鈥�.