Region's property sector set to thrive

YORKSHIRE'S property and construction industry is set to thrive in 2017, despite facing challenges, according to a regional expert.
Giles Taylor, KPMG's northern head of property and constructionGiles Taylor, KPMG's northern head of property and construction
Giles Taylor, KPMG's northern head of property and construction

Giles Taylor, northern head of property and construction at KPMG, said there was a healthy pipeline of commercial developments across the region but he added that the skills shortage, rising costs and political uncertainty had hit the sector hard.

“A great example (of a new development) is the extension of an existing leisure and business park outside Leeds at Thorpe Park by Scarborough Group, with a shopping centre and 40,000 sq ft of office space in the works,” he said. “This bucks the national trend that has seen schemes put on hold as some corporates delay investment decisions pending clarity on Brexit.

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He added: “While the pipeline is strong, challenges do remain. The industry as a whole has suffered from an endemic skills shortage in recent years. “To tackle this in 2017, firms across Yorkshire need to make a concerted effort to retain the talent being nurtured in our universities and offer attractive, long-term opportunities for young people.

“Additionally, rising material costs, the fall in the value of sterling, and the political uncertainty throughout 2016 have all hit the construction sector hard in 2016.

“It’s important to remember that amidst this macro-economic uncertainty, the fundamentals of business still apply.

“Demand remains high and contractors that look beyond political and economic instability, plan for the long-term and produce a high-quality product, with high-quality customer service will succeed.”