Investor confidence in the commercial property sector has risen at its highest level since the second quarter in 2008, according to Jones Lang LaSalle's latest UK Real Estate Investor Confidence Survey.
The data revealed that buyer confidence has risen by seven per cent in the second quarter of the year, compared to the first three months of 2013, which represents an enormous 63 per cent rise on the second quarter in 2012. Competition for assets in the market has continued to rise in the past three months, and 61 per cent of the 100 lenders and principals surveyed expect more buyers than sellers in the sector, up from 42 per cent in the first quarter of the year.
Simon Cullimore, head of the Valuation Advisory team at Jones Lang LaSalle, said: "It is perhaps unsurprising given the more positive news coming out of the UK economy that we have seen a rise in investor confidence. Equally, we have witnessed a notable improvement in the property lending markets with growing appetite from lenders to finance not only prime but also good secondary property.
"Nearly 50 per cent of respondents to our latest survey felt that debt had become more available. This backs up our view that regional lending is increasing and that financing is now available for a wider range of assets than one year ago."
One region that has been performing particularly well has been Yorkshire. For example, in Leeds, the nearly-completed Lumiere site and M&G's recent £29 million take-up of Toronto Square indicate a flourishing market and boosted investor confidence in the region.