North of England SMEs will see property values improve

According to a recently published report, small businesses in the North of England can look forward to an expected rise in the value of their properties during the year. The study has been published by Lloyds TSB and is being conducted by Property Matters.

The report also highlights that London is still the best place to own commercial property in the UK and there is confidence throughout the industry that values are going to continue to increase in the city.

It is not just London that are expected to experience growth in the value of their commercial property and the north-west is a pocket of the country set to receive an increase in value over the coming year. It is expected that the area will experience a growth of nearly 6 percent, which compares favourably to the growth expected in London which is about five percent.

Despite the optimism for this part of the country, business owners in the area are still rather gloomy about how they expect the property market in the UK to perform overall. In London businesses are still positive about property and they expect their commercial property value to increase. This further highlights the difference between the south and north of the UK.

The relationship director of Lloyds TSB in the North is Stephen Hughes who has commented, “It is understandable that business owners in the north-west of the country are not particularly optimistic as they have recently been through rather hard times. Fortunately though, the attitude towards property is improving and it is expected that the market will rise.

“A recent study showed that around half of businesses in this part of the country are relying on bank loans as their primary funds and this can offer an idea of why they might be reluctant to invest in commercial property at this time.”