Insurance News Archive

'Major problem' in south-east commercial property

Office space is at a premium for small businesses in the south-east of England, forcing prices higher than many can afford, it has been suggested.

According to the Forum of Private Business (FPB), there is ample property in other parts of the country, but the premises available in the more affluent south-east are often not suitable.

Philip Moody, the FPB's head of member services, said that the organisation often received reports from its small business owners that they were having difficulty finding space.

"It is especially true in the south east, because of the high rents and a lack of suitable business premises," he said.

"A lot of our members are looking for space on industrial estates and in a lot of areas there is very little suitable accommodation."

Mr Moody explained that the dearth of property may be stunting the growth of small businesses, noting that expanding firms in the south-east often have to "make do with premises that are the wrong size for their needs".

The lack of commercial property in the region may be eased by continuing building work, especially in London, although the global credit crunch has been predicted to reduce the level of construction work over the next few years.

01 Oct 2007