PROPERTY businesses in Yorkshire have voiced strong investment intentions for the new year.
A survey by Lloyds TSB Commercial found that 62% reported a commitment to maintain financial investments over the next three to six months.
But the bank’s latest Property Matters report also found that small to medium-sized property businesses in Yorkshire continue to face challenges across the sector, including a lack of confidence over issues such as local planning policy, which are hitting investment.
Businesses in Yorkshire reported a net improvement from minus 11.8 to plus 1 in confidence in the region – contrasting with the national average which stands at minus 10.
Three quarters of small and medium-sized businesses in Yorkshire expect no shift in values over the next three to six months, compared with 64% nationally.
Residential lettings are set to remain strong, with 37% of Yorkshire SMEs predicting that the market will prosper over the coming three to six months. This compares with 45% of all SMEs nationally.
Of these businesses, 59% of the region’s residential property businesses said they were expecting to see strong performance in residential lettings, compared to 40% of commercial operators.
More emphasis is also set to be placed on house build opportunities, with 40% of commercial businesses in Yorkshire planning to focus on this area of the market, compared with 31% of all SMEs nationally.
Ken Davies, relationship director for Lloyds TSB Commercial in Yorkshire, said: “It continues to be a challenging time for those operating in the property sector in Yorkshire.
“It is welcome news that 62% of SMEs in the region plan to maintain their financial commitment over the next three to six months. The commercial sector and operators in residential also revealed an intention to invest for the future.
“SMEs continue to cite the challenging UK economy and local planning policy issues as influencing their decisions to invest.
“We continue to work closely with our customers and have a team of dedicated property managers focused on supporting and advising businesses operating in the residential and commercial sectors.”