U.k. Commercial Construction Applications Extend DeclineNeil Callanan
U.K. building-permit applications for commercial-property developments fell for a second year in 2012, bringing the decline since 2008 to 23 percent, legal firm EMW Law LLP said.
The number of applications dropped 3.5 percent to 38,600, London-based EMW said in a statement today. The permits sought for retail, warehouse or office-building projects with floor space of at least 1,000 square meters (10,800 square feet) dropped 9 percent to 2,100 last year, according to the firm.
The U.K. government has been trying to stimulate construction and property development to help spur economic growth. Credit availability for commercial real estate, however, was little changed in the first quarter and was predicted to remain that way through June, according to a survey published by the Bank of England in April.
There have been more tower cranes for building construction erected in London in the last three years than in the rest of the U.K. combined, EMW said, citing data from the Health & Safety Executive.
The value of income-producing properties in areas outside of London fell 7.2 percent from September 2011 through March, while rising 7.4 percent in the city’s center, according to Investment Property Databank Ltd.