Development activity in May has remained low, new research has found.
Savills and NTC Research’s Commercial Development Activity Index has revealed three times as many developers have seen development slow compared to those who thought it had improved.
The index has improved since April, although it remains at its second lowest point.
It recorded a net balance of -19.7 per cent in May, up from -20.8 per cent in the previous month.
The survey said the result was "still indicative of a sharp contraction of overall activity in the commercial property sector", Property Week has reported.
According to the index, developers blamed weak market sentiment and stricter credit availability.
UK Commercial property rents fell for the first time since 2003, a separate study by CB Richard Ellis has found.