Autumn Budget fails to derail commercial property confidence

Commercial property demand across the UK stayed broadly positive at the end of last year, despite political uncertainty surrounding November’s Autumn Budget, new data suggests.

Rightmove’s latest Commercial Insights Tracker shows both leasing and investment activity continued to grow during Q4 2025, even though momentum eased.

The slowdown, it said, reflected caution rather than weakness.

The Labour government’s second Budget landed unusually late on 26 November, after months of speculation around potential tax changes.

Decisions delayed

The platform’s managing director of commercial, Andy Miles, said: “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.

“Some business leaders understandably delay their decision making when potentially large financial changes are just around the corner.”

He added: “It’s still a difficult cost climate for many businesses, but stable demand to lease commercial space and interest rate reductions for investors would help to create some momentum for the 2026 market.”

Most sectors appeal

Demand to lease warehouses and logistics space rose 11% year on year, while investment increased by 12%.

Office leasing saw demand up 2% and investment rising 4%.

Leisure saw marginal growth in lettings at 1% but a sharper fall in investment demand, down 7%.

Retail remained under pressure, with leasing enquiries slipping 4% despite a 3% rise in investment interest.

Looking ahead, commercial sector expectations for the year appear more constructive with the firm predicting interest rate cuts later this year as a potential catalyst.