Graham Chase, commercial property spokesman for the RICS, said developers and occupiers alike were crying out for strong steady growth, but instead were faced with government U-turns on issues such as the recent share option debacle and wrangling between the Chancellor and the Bank of England over interest rates.
That had resulted in a slump in confidence during the second quarter of the year, especially in the industrial sector where a net balance of 1 per cent of property professionals were more confident compared with 33 per cent three months ago.
Mr Chase said: "The falls in unemployment seen over the last two years look to be coming to a halt, reducing the demand for working space in all sectors. Stagnation of manufacturing productivity and concern over the sector's prospects have led to many expansion plans being postponed."Reuse content