Given the political uncertainty which engulfed the UK after the vote to leave the EU it was, in many respects, astonishing to see take-up levels reach record levels in 2016.
Into 2017 negotiations between the UK and the EU are now under way, inflation is increasing, and the residual impact of an unexpected General Election is still being felt. It should come as little surprise therefore that transaction levels in the sector have faltered.
Two key demand drivers however have not changed; the continued shift towards multi-channel retailing and the continued investment in, and growth, of the UK automotive manufacturing sector. And on the supply side, development remains restrained meaning that supply levels are still way below any previous peak.
Latent demand should see take-up levels increase into the second half of the year and there is no evidence to suggest a development boom is planned.