Firms set to fuel boom in property

“Firms will need to move quickly once they spot an opportunity”

Small and mediumsized enterprises (SMEs) around the UK will fuel a commercial property boom in the next two years, according to a new study.

Research by finance specialist Together found nearly six out of 10 SMEs (58%), or nearly 3.4 million firms, saying a boost in business is driving a need to move or extend their existing site in order to accommodate more staff or equipment.

Among firms with specific property plans, 30% were looking to move to bigger premises.

About one in six (16%) of the businesses surveyed aimed to extend their existing facilities. Another one in eight (12%) planned to buy additional buildings or construct them from scratch.

But some businesses fear their ambitions to expand could be hampered by a shortage of suitable property, the study found.

Andrew Charnley, head of corporate relationships at Together, said: “There is real evidence of a property boom getting under way. Business owners finally feel assured enough to commit investment into a move or to extend where they are.

“Firms will need to make sure they can move quickly once they spot an opportunity, so it’s advisable to have clear plans in place.”

Mr Charnley said there was a “real opportunity” for lenders and other advisers to provide support for SMEs to help them achieve their ambitions.

He added: “The worry is that some lenders tend to ignore business track records when making decisions and adopt a one-size-fits-all approach.”