The result confirms an upward trend that began early in 2003, when confidence began to recover from a negative balance of 16%. IN Q4 2001 almost 40% more reporting a fall in occupier demand than a rise.

New occupier enquiries rose and surveyors expect rents in the first quarter of 2004 to rise for the first time in two and a half years. The value of inducements offered to tenants has continued to rise, but at a slower pace. Business occupiers can still get favourable terms, but the tide may be on the turn.

In London, 35% more chartered surveyors reported a rise in demand for office space than the previous quarter. But rental outlook is still negative as the current oversupply of office property is acting as a brake on rent rises. Retail and industrial property activity remained largely unchanged. Retailers continue to prefer out-of-town properties to urban centres, with enquiries up for six consecutive quarters.