"Construction of offices, shops and warehouses in the UK has fallen to the lowest level in more than a decade amid rising build costs and uncertainty. All commercial sectors have been hit, with construction across office, retail and industrial sectors down by 21% to 5.85m sq metres (63m sq ft) in the third quarter compared with a year earlier, according to the latest data from CoStar."
"This is the lowest commercial construction since 2014, and comes as housebuilding is also slowing, in a blow to the Labour government, which last year announced an ambitious target of building 1.5m new homes over five years. This year is on course to be the weakest for construction starts so far this century, amid high construction costs caused by skill shortages and rising raw material prices, and high vacancy rates, according to the report from the property information company."
"In better news for the property sector, office take-up in the UK has increased to its joint highest level since the pandemic began in 2020. It rose by 24% year on year in the third quarter to about 1m sq metres (11m sq ft), as many companies ordered their staff back to the office. This was led by London, while outside the capital demand for office space continues to drop."
Construction of offices, shops and warehouses in the UK fell sharply to its lowest level since 2014, with commercial starts down 21% to 5.85m sq metres in the third quarter year on year. Housebuilding is also slowing, jeopardising the target of 1.5m new homes over five years. High construction costs driven by skill shortages and rising raw material prices, alongside high vacancy rates and elevated bond yields, have reduced investment and construction starts. Some large transactions under offer in London could support a fourth-quarter rebound. Office take-up rose 24% year on year to about 1m sq metres, led by London.
Read at www.theguardian.com
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