Lloyds says that a recovery in the UK commercial property sector
is imminent, with small and mid-market firms increasing their
activity in the last six months. Their
Commercial Property Confidence Monitor, which surveys 500 real
estate professionals, has reached its highest levels since research
began in 2010.

88 per cent of all fund managers expect the values of their
assets to increase over the next three to six months compared to
just 10 per cent at the same point last year; confidence from
Scottish businesses and fund managers led the way at a massive 90
per cent.

The South West followed Scotland with 86 per cent confidence, with the North West (77 per cent) and the
Midlands (75%) shortly behind.

'We are seeing our London based mid-market investors and
developers actively looking to grow and they are largely having
tangible success. Outside London is quite a different story and
many quality assets are trading in the regions to London and
internationally based funds and major investors,' said Marty Green
of Lloyds Bank Commercial Banking.

'In larger cities across the UK, local investors and developers,
whilst talking more positively, are remaining cautious and
focussing on pre-commitment, which is improving with some signs of
step change, but is best described as subdued,' he added.

Among major firms, 80 per cent expect their assets to increase
in value over the next few months:

'The UK market in 2013 has been stronger than many expected it
to be. It's becoming an increasingly competitive environment for
developers and investors as well as the banks,' said John Feeney,
global head of corporate real estate at Lloyds Bank Commercial
Banking.

'The huge upswing in confidence among fund managers in the past
year is perhaps the most significant bellwether yet of the market's
recovery and, with a majority of this cohort and large businesses
looking to invest more, the momentum is continuing to gather pace,'
he said.

The research also showed that London, Manchester and Birmingham were cited as the top three
destinations for investment over the next six-12 months. All
regions expect a boost in commercial property investment in the UK
as a result of the HS2  rail network planned between
Birmingham and London.

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