Retail to lead property recovery

Demand for shops is on the increase, according to a survey of property confidence by the CBI and GVA Grimley.

Retailers are now the most optimistic sector of the UK economy, with 12 per cent expecting to increase their property holdings in the next six months.

This is below the long-term average of 20 per cent, but is an improvement on the negative balance of 1 per cent in the last of the six-monthly surveys.

But the report notes the recovery could be fragile. The number of retailers unsure of their plans has increased to 72 per cent, compared with the long-term average of 21 per cent.

Overall, the survey does not bode well for the UK economy, with business confidence in most areas still subdued and demand for office and industrial property flat at best.