UK property investors will find themselves better off over next two years

UK property investors will find themselves better off in the next couple of years because of the fewer number of properties being built, according to commercial property consultant Drivers Jonas.

Anthony Duggan, head of research at the consultancy firm, said that developers stopping construction work now would mean that property investors would benefit as demand inevitably balances out.

"The positive thing for investors and developers is that by stopping construction now, there won't be new buildings being delivered in 2011 and 2012, which means we get a rebalancing of demand over that time," he said.

Mr Duggan added that the economic situation is not forecast to improve for some time, which means that, from a demand point of view, 2009 will not be a particularly good year.

According to the 2008 third quarter Drivers Jonas crane survey, total construction activity is down 20 per cent over the last six months, with just four new starts being recorded in the period.

Property Investment News posted on 19/11/2008 16:39:15