The pace is increasing as confidence returns. But how long will the newfound enthusiasm last and produce the volume of new buildings the region and the UK needs? That is the question. The view is strongly held in the region that the improvement of the past two years will last this year and what is gratifying is that new developments are coming forward.
Perhaps the most significant events are that Legal & General is setting up a new £1.5 billion fund for refurbishment and Hermes, together with a Canadian fund, is making a major commitment to investment in the UK.
The regional markets are in favour and Yorkshire is right up there with all the other regions.
Now this is good for the balance of the UK economy and should receive every encouragement from the government, as we have already seen with transport plans for the north.
What should not be forgotten is that the shift away from the office market, notably in Sheffield, relying on the public sector for its business was always going to be hard. The hope now is that the shift to the private sector has taken hold and Sheffield will have a stronger economy as a result.
This process takes time so it should be no surprise that most regional markets are short of buildings to let. Apart from the dominance of the public sector to overcome there has been the long drawn out recession. Let’s hope that is behind us now.