Commercial property development activity fell to its lowest level since February 2009 last month, according to the latest sentiment survey from Savills.
December was the sixth consecutive month in which developers have reported a decline in activity, with the decline in December accelerating sharply from November.
Savills found that around 32% of commercial developers recorded a fall in activity in December, compared with roughly 14% that indicated a rise.
Looking ahead to the first three months of 2012, some 23% of respondents said they expected further declines in activity, with just 16% expecting a rise.
Continuing concerns over economic conditions and ongoing restricted finance are being cited as reasons for the lack of confidence.
samantha.mcclary@estatesgazette.com
