Commercial property, such as serviced offices in Northampton, is likely to experience increased development after next month's spending review, according to one industry figure.
Michael Pillow, head of building consultancy at Savills, was commenting on the firm's latest commercial development activity index.
The report revealed activity in August declined at the steepest rate in fourteen months, with almost 28 per cent of commercial developers reporting an overall decrease in output for the month.
Mr Pillow attributed the figures to uncertainty about the nature of budget cuts in the October government spending review.
This is causing developers to remain unsure of tenant demand and rental growth, he explained.
"While the news in October may not be good, the removal of speculation and uncertainty should deliver a boost to developers' confidence."
Those seeking offices to let may also be interested in recent comments from Ian McBryde, manager of the Isis Property Trust, who told Fund Strategy that offices are a good source of revenue.
