Commercial building speed accelerates again - commercial mortgages

14 August 2007

Commercial building activity rose at a faster pace last month despite figures remaining below the long-term average, it has been advised.

Savills'' index of Total Commercial Activity rose from 56.2 per cent in June to stand at 58.2 per cent last month, the firm revealed.

Developments in the public sector were on the increase, with new-build projects in the market now rising at the quickest rate since October 2006, the figures show.

However, the firm added that this was countered by a fall in the speed at which private sector developments were expanding.

"We don''t expect to see a marked pick-up in activity or intentions until the base rate has been signalled as having reached a peak," commented Savills'' commercial research department head Mat Oakley.

But with today''s inflation figures coming in below the Bank of England''s target, landlords with commercial mortgages may find that rates have done just that.