244: Data shows Nov acceleration in UK building boom

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LONDON, Dec 12 (Reuters) - Commercial property development in Britain picked up at its fastest rate in eight months in November, led by private sector office construction, which hit a near three-year high, data showed on Tuesday.

Property agency Savills Plc (SVS.L: Quote, Profile , Research) said its Total Commercial Activity index jumped to 62.8 in November from 61 in October -- an 11th straight month above the 50 mark that would denote no growth.

The survey of leading UK commercial property developers and contractors hinted at potential supply problems in the future. But it also showed office fit-out activity at its highest level since March 2003, suggesting tenant demand was keeping pace with development activity for now.

"Looking ahead, we remain concerned about the possibility of too much office development taking place in some locations, however at present it appears that demand is keeping pace with supply," said Mat Oakley, Savills' head of commercial research.

For a fourth month running, panelists said London was the best-performing region.

Commercial developers said they were also confident that levels of office, retail, and leisure property construction will continue to increase in the three months ahead.

The monthly survey of leading UK property contractors and developers is conducted for Savills by NTC Research, which also produces widely tracked Purchasing Managers' Indexes on Europe's manufacturing and service sectors.

As with NTC's other surveys, the 50 mark divides growth from contraction.

Source:

Reuters.co.uk