Boost of SME entrants in real estate
The number of SMEs entering the UK real estate sector has risen by 17% since 2010, according to Hampshire Trust Bank.
The research conducted with the Centre for Economics and Business Research (CEBR) revealed the sector demonstrating the highest growth was technical and professional industry.
Colin Bell (pictured), managing director of commercial mortgages at Hampshire Trust Bank, said: “Our report identifies the critical importance real estate SMEs play within the economy and the need to support their activity across the UK.
“With the redevelopment of out-of-town industrial parks and the emergence of local distribution hubs around the country to fulfil the increasing consumer demand for two hour delivery deadlines, we can only expect this growth to continue.
“The government also has an important role to play to support all SMEs. With decisions around the UK’s exit of the EU looming, investment in smaller firms is vital to ensure these companies can continue to identify and capitalise on new opportunities to develop.
“This is crucial if we are to continue to see the strong economic performance we are currently witnessing in the UK.”
Nina Skero, managing economist at CEBR, said: “This study is yet another indicator of how strong UK SMEs are and the vital role they play within the UK economy.
“This further highlights how vital it is to nurture the optimism they are demonstrating if they are to continue driving economic growth.”
Commercial landlords in northern cities such as Bradford, Liverpool and Hull have generated stronger yields compared to the south according to Hampshire Trust Bank.
The results also showed three in five (57%) real estate SMEs feel optimistic about the long term economic prospects for their sector.