London office development


Crane and buildingImage copyright
Reuters

The number of new office developments getting under way in London has dropped by 9% in the past six months, according to a study by consultants Deloitte.

The firm’s London Office Crane Study also indicates the amount of new office space under construction is at its lowest since 2014.

It said political uncertainty was holding back development.

Deloitte say its survey acts as a barometer for both the commercial property market and the wider economy.

‘Changeable environment’

The report said that, since the announcement of the UK’s referendum result to leave the European Union in June 2016, “business and political landscapes have endured a rollercoaster ride of uncertainty, punctuated by a less‑than conclusive UK general election”.

It said this was reflected in the short supply of optimism among some of the country’s chief financial officers (CFOs), which it also regularly surveys.

Deloitte added: “The changeable business environment continues to keep CFOs on a cautious footing. It is this caution that is being reflected in the shifting outlook for future office development.

“The top of the list is Brexit, and during the negotiation period it will continue to play its part in creating uncertainty for businesses, now and potentially after the exit.”

However, the report was not all gloomy. It said despite the fall in the number of schemes being started, the number being completed was above average and that 2017 was on course to deliver a 13-year high of space.



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