Public sector development activity plummeted in June compared with the previous month according to the Savills development activity survey, which was published today.

The figures, which are based on asking developers whether development is up or down on the month before, fell at the fastest rate since January 2009.

The net balance of responses was down 28.6%, while private sector development increased by 10.6%, rising for the eleventh month in a row.

This put total development activity down 2.8%.

The sharpest drops were registered in public sector office development, down 30%, and public sector new build, down 19.6%.

Michael Pillow, head of building consultancy at Savills said: “Public sector austerity measures are now firmly impacting on the development market, with development activity for public sector clients now in double-dip territory.

“Thankfully the slack is being taken up by continuing growth in the private sector.”

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