UK companies are responding to favourable economic conditions by expanding their property portfolios, says a new report.

The latest in a series of studies carried out by surveyors GVA Grimley for the CBI shows that about 40% of companies have increased their property holdings over the past six months, with only about 15% cutting back. The trend towards portfolio growth is on the upswing, with the number of companies reporting no change declining.

But this pattern is not evenly spread across the country.

Acquisition rates in Northern Ireland, Scotland and the north of England have run significantly behind other areas. This is a broad reflection of general economic trends, says Grimley, but reported plans for investment suggest that a better regional balance should emerge soon.

Overall, the pattern of more acquisition is expected to continue at least through the first half of the year.

The CBI's Sudhir Junankar commented: "Firms generally feel more confident about business prospects and therefore about expansion. But the results do highlight continuing imbalance between the manufacturing and service sectors. Service sector companies are much more upbeat."

Elliott Chase