SME property businesses across the Midlands are expecting the
values of their own portfolios to rise, despite a lack of
confidence in the wider market, according to a report from Lloyds
TSB Commercial.
'Property Matters' reveals that while London stands alone in
terms of positive confidence levels, there are pockets of optimism
in the UK regarding investment levels in a sector which has been
hit hard by the recession.
In the Midlands, property owners are preparing to invest in
their residential or commercial portfolios in the next few months -
a net increase in investment value of +12.19% in the region,
compared to +5.07% in London and +5.99% nationally.
The report looks at the confidence of SME property businesses
throughout the UK in terms of sentiment (positive or negative),
attitudes to investment and sources of funding.
It reveals that in the Midlands, even though expectations for
the value of their own portfolios is positive, property business
owners are far more negative about the wider UK market (net score
of -13) and their own sector (-15) than the UK average or in
London, where businesses have a modest expectation (UK -8; London
+5) of improvement in sector activity.
Andy Watts, relationship manager for Lloyds TSB Commercial in
the Midlands, said:
"It has been a challenging time for SME property owners in the
Midlands and it is understandable why they would not show a lot of
confidence in the market over the next few months.
"But it is encouraging to see that there is a positive attitude
to investment. Even though businesses in the sector are not
expecting values to rise or the market to be particularly buoyant,
they are prepared to take advantage of the investment opportunities
presented by lower or static property values.
"With over 50% of businesses in the Midlands citing bank debt as
their primary source of funding, it is important that we understand
the challenges they face and offer specialist property support
which can help them invest and grow their businesses.
"Intention to invest is a positive sign but it is actual
transactions in the SME property market - both residential and
commercial - which will help to restore wider confidence in the
region and the UK.
"London's property market is always likely to demonstrate a
greater degree of confidence than a region such as the Midlands so
it is important that, where opportunities do exist, property
businesses feel they have access to finance."
Lloyds TSB now has 100 property managers based throughout Great
Britain - www.lloydstsb.com/property - who are immersed in the
sector by virtue of their customers and their professional
networks, including relationships with brokers and IFAs.
This approach has helped year on year lending growth rise by 9
per cent.