Steady Demand Despite Budget Uncertainty

New data from Rightmove’s Commercial Insights Tracker reveals that UK commercial property demand held firm through the final quarter of 2025, despite the political uncertainty caused by the Labour government’s Autumn Budget announcement on 26 November. Both leasing and investment activities continued to grow year-on-year, although the pace of growth slowed somewhat. This slowdown is attributed to cautious decision-making rather than a weakening market.

Andy Miles, Rightmove’s managing director of commercial, explained, “It seems that uncertainty in the run up to the Budget suppressed demand in some areas, but it’s positive that it mostly continued to grow year-on-year.” He noted that some business leaders delayed decisions due to the prospect of significant financial changes, which is a common reaction in uncertain economic climates.

Sector Performance Highlights

The report highlights varied performance across commercial property sectors:

– Warehouses and logistics saw a strong increase, with leasing demand up 11% and investment rising 12% year-on-year.
– Office space leasing grew by 2%, while investment increased by 4%.
– Leisure property experienced marginal growth in lettings at 1%, but investment demand declined by 7%.
– Retail remained under pressure, with leasing enquiries falling by 4%, although investment interest rose by 3%.

These figures suggest that while some sectors are thriving, others continue to face challenges, reflecting broader economic trends and shifting business priorities.

Implications for Landlords and Investors

For landlords and letting agents, the resilience of demand, particularly in warehouses, logistics, and office sectors, indicates ongoing opportunities despite a challenging cost environment. Andy Miles pointed out that “stable demand to lease commercial space and interest rate reductions for investors would help to create some momentum for the 2026 market.”

This suggests that any forthcoming interest rate cuts could act as a catalyst for increased activity in the commercial property market, potentially easing financing costs and encouraging investment. However, landlords should remain mindful of the cautious approach many businesses are taking in their leasing decisions amid economic uncertainties.

Looking Ahead

Rightmove’s outlook for 2026 is cautiously optimistic, with expectations that interest rate reductions later in the year could stimulate further growth in the commercial property sector. This is a key factor for landlords and investors to monitor, as it may influence market dynamics and tenant demand.

Overall, the Autumn Budget’s late delivery and the surrounding uncertainty caused some delay in decision-making but did not derail confidence in the commercial property market. Landlords and agents can take reassurance from the continued positive demand trends and prepare for a potentially more active year ahead.

Suggested internal link anchors

• commercial property demand
• leasing commercial space
• investment activity
• warehouses and logistics
• office leasing
• retail property challenges
• interest rate reductions
• commercial property market outlook
• Autumn Budget impact
• business decision making

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/