Real estate SME numbers up 17%, says Hampshire Trust

by: Heather Greig-Smith
  • 28/03/2017
  • 0
Real estate SME numbers up 17%, says Hampshire Trust
There has been a 17% rise in the number of small businesses in the real estate sector since 2010, according to research by Hampshire Trust Bank.

The challenger bank said these businesses include those which own or manage properties such as estate agents and commercial landlords.

It conducted the research in partnership with the Centre for Economics and Business Research (CEBR). The three sectors which demonstrated the highest growth were technical and professional (39%), information and communication (33%) and business services (25%).

Hampshire Trust said there has been a boost to commercial landlord opportunities across the north of England, in cities such as Bradford, Liverpool and Hull, where investors are able to generate stronger yields compared to the south.

Almost three in five (57%) real estate small and medium-sized enterprises (SMEs) feel optimistic about the long-term economic prospects for their sector, higher than the national average of 52%.

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.

“Working with commercial landlords, we have seen cities outside of London and the South East, such as Bradford, Liverpool and Hull where investors are able to generate stronger yields compared to the south of the country, grow at a significant pace.

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.”

Bell said the government has an important role to play to support SMEs, especially with Brexit on the horizon.

Nina Skero, managing economist at CEBR, added: “This study is yet another indicator of how strong UK SMEs are and the vital role they play within the UK economy. It’s encouraging to see SMEs across various industries posting a strong performance. This further highlights how vital it is to nurture the optimism they are demonstrating if they are to continue driving economic growth.”

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