Commercial property bounces back in Yorkshire

Sales reached £233 million during the first quarter of the year, compared with £165 million in the last quarter of 2009

Investment in commercial property has shot up in Yorkshire and property values have risen even faster, according to research by national property consultancy, Lambert Smith Hampton.

Sales reached £233 million during the first quarter of the year, compared with £165 million in the last quarter of 2009 – an increase of 41 per cent.

At the same time, the average property price surged from £7.8 million to £11.6 million – an increase of almost 50 per cent and the highest rise since the first quarter of 2009.

LSH says demand in the Yorkshire property market is particularly increasing in the retail and office sectors, which accounted for 48 per cent and 38 per cent of total activity, respectively.

Nationwide, LSH says institutional investors have made their largest net commitment to the UK property market for more than three years, with net investment more than trebling from £0.3 billion in the final quarter of 2009, to £1.1 billion.

Guy Gilfillan, Sheffield-based head of LSH Yorkshire, said: "While it may appear that investment activity across the region is improving, we mustn't get ahead of ourselves.

"Activity is restricted purely to prime stock as investors continue to adopt a cautious approach, save for Central London, which has seen a steady increase in rental levels over recent months.

However, it is only a matter of time before the north witnesses similar improvements in rental growth."