Industrial premises demand surging to record

Mike Dove, of Leeds-based Dove Haigh Phillips, said that demand for industrial land in Yorkshire from manufacturers has never been higher.

Satisfying this pent-up demand and unlocking the land for development was the key to economic recovery, he said.

Mr Dove said yesterday: “This isn’t just idle talk. These manufacturers have instructed their engineers and architects to draw up detailed designs and their lawyers are already preparing draft documentation.

“They are raring to go. At the same time, the more forward-looking local councils in Yorkshire, emboldened by the Government’s relaxing of the planning laws, are pro-actively identifying sites for inward investment.

“All this adds up to a very bright future for the Yorkshire economy, provided the right land becomes available,” said Mr Dove.

Yorkshire professionals in the construction industry reported a rise in their workloads for the first time since the end of 2007, according to the latest quarterly RICS (Royal Institution of Chartered Surveyors) construction market survey.

In the last quarter, a net balance of three per cent of chartered surveyors in Yorkshire and the Humber reported an increase in work. The increased activity is being driven by the growing number of housing, industrial and other public schemes in Yorkshire.

A spokesman for the RICS said: “While still historically low, the increase in built developments suggests that some of the Government initiatives are quietly beginning to breathe life back into parts of the region’s property sector.”

However, the survey found that infrastructure projects across Yorkshire and the Humber fell over the last four months and little improvement has been seen in the sector since 2007. This is despite attempts by the Government to stimulate the economy through privately funded infrastructure schemes.

While London, the South East and the North and Midlands saw increases in construction activity, Northern Ireland and Scotland continued to see workloads slip.

The spokesman added: “The sector in these parts of the UK remains particularly depressed and the picture shows no immediate signs of improving.”

Yorkshire’s chartered surveyors said they did not expect construction workloads or employment to increase over the next year, as they remained cautious of the uncertain marketplace.

Rob Hindle, the chairman of the RICS Yorkshire & Humber regional board, said: “There still remains a lack of confidence in the construction sector which is impacting upon the decision-making process.

“There also appears to be no rush to get to the construction stage, even with extremely competitive tender levels from contractors.

“These obstacles, along with the continuing difficulty in obtaining finance, make it an ongoing challenging time for the construction industry.”

Simon Rubinsohn, RICS chief economist, said: “Although it’s far too early to start talking about a recovery in the construction sector, the rise in output at the beginning of the year is a little better news.”