Listed developer warns there is little prospect for short-term improvements
Listed developer Development Securities has warned that the property market “lacks momentum” with little prospect of improvement in the short term.
Reporting half year results, Development Securities chair David Jenkins welcomed the fact that rents for commercial properties have largely stopped declining. However, he added: “is difficult in the near-term to see significant, sustained rental growth appearing in the general economy. It would appear that the market lacks momentum both on a rental and capital basis.”
He added that while foreign investors were keen to put money into UK property, there was still a lack of bank finance for actually building out the development opportunities they already held.
Development Securities, behind the Paddington Central, St Brides and Heart of Slough developments, reported a pre-tax profit of £0.8m for the six months to June 30, compared to a £19.1m loss last year. However it said the value of its assets declined by 2.3% to £238.5m