New office orders 'set to fall'

A major construction body has predicted that new office orders in the UK are set to drop by 50 per cent over the next two years.

The Construction Products Association (CPA) has claimed the drop, which could affect the commercial property market, will follow on from the 47 per cent fall in orders already experienced.

However, it was also revealed that while total new construction is set to drop by ten per cent this year, public non-housing construction output is set to rise by 22 per cent in the next two years.

Michael Ankers, chief executive of the CPA, said: "The key message from these forecasts is that the construction industry is heavily reliant on public sector spending to sustain even these reduced levels of activity."

Research by real estate advisor CB Richard Ellis recently revealed that commercial property values in the UK dropped by 4.9 per cent during December.