PROPERTY businesses in the South West are responding to a resurgent housing market and are more positive about the growth of sector activity in the next three to six months.
Industry confidence is at its highest level since 2011, according to a new survey from Lloyds TSB Commercial Banking.
The latest Property Matters report revealed that 43 per cent of small-to-medium-sized property businesses in the South West are confident the market is recovering and that they will see an uplift in activity.
This contrasts heavily with the flat market conditions reported by firms six months ago.
The report also reveals that with encouraging attitudes and confidence in the growth prospects of the sector, more than a third (37 per cent) of businesses in the region have increased their overall investment plans for the next three to six months.
Small or medium businesses in the South West predict their portfolio will exceed performance expectations, with more than half (55 per cent) expecting an improvement as economic conditions recover – a figure which has doubled in the last six months.
Firms are capitalising on this market growth, with the Property Matters report showing residential lettings remain the region's strongest performing sector.
Industry priorities are responding to growing consumer confidence, with nearly a quarter of local firms favouring housebuilding as the next best performing sector, overtaking out of town retail.
Colin Vallance, senior manager at Lloyds TSB Commercial Banking in Devon & Cornwall, said: "Confidence in the property sector is growing and is at its highest levels since our inaugural Property Matters survey was conducted in 2011, with a resurgent housing market encouraging confidence throughout the South West.
"Small and medium businesses in the region that are looking to capitalise on this positive outlook and require financial support need a lender with extensive sector experience, and our team of dedicated relationship managers is able to offer guidance and funding support to firms operating in the residential and commercial property markets in the South West."