Rentals 'to fall in the Midlands'

Research has predicted that the next two years may be difficult for the commercial property sector in the Midlands.

According to the study by GVA Grimley, rentals in the market in Birmingham and the surrounding area are set to fall by around two per cent across 2009, with further drops expected in the year after.

The Birmingham Post reports the current financial climate has been attributed as a key factor behind the difficulties.

Stuart Morley, head of research at GVA Grimley, told the newspaper added that the sector is "feeling the effects in terms of reduced occupier demand across all sectors".

However, he added: "We believe that demand will improve during 2009 for prime investments considered to be of institutional quality."

According to recent figures from the Construction Products Association, the level of office construction in the UK is set to fall by 24 per cent.