Markets
Private Housing
Private Housing
The recovery in the wider housing market remains fragile, according to Glenigan. Any renewed weakening in the UK economy or potential rise in bank base rates from their current extremely low level would quickly erode market confidence.
Social Housing
Social Housing
The new social housing sector will continue to suffer from the fall-out of the private housing market as the flow of mixed-use developments and projects part-funded through section 106 agreements remains sparse, according to Glenigan.
Education
Education
A change of government also poses a downside risk to project starts in the education sector, according to Glenigan. Whilst Conservative policies support continued investment in education to drive up standards, this support does not automatically apply to existing capital programmes such as BSF.
Health
Health
There has also been a marked improvement in detailed planning approvals over the last year, according to Glenigan, with the value of underlying planning approvals during 2009 41% up on a year earlier.
Hotel & Leisure
Hotel and Leisure
Whilst quarterly project starts are expected to remain volatile, the hotel and lesiure sector is forecast to benefit from a 16% rise in the value of underlying project starts over the coming year, according to Glenigan.
Industrial
Industrial
Whilst excess manufacturing capacity will remain a disincentive for investment in new industrial buildings near term, the medium term outlook for 2010 and 2011 is potentially more encouraging, according to Glenigan.
Retail
Retail
A rebound from the current extremely depressed levels is anticipated during 2010, according to Glenigan, as development finance becomes more widely available and the major supermarket trends press on with their capital expenditure programmes.
Offices
Offices
Whilst the flow of new office projects remains extremely weak, market conditions have moved off the low point reached in the first half of 2009, according to Glenigan.
