At -20.8% in April, down from -16.4% in March, the Total Commercial Development Activity Index - a net balance designed to provide a single-figure measure of overall activity in the commercial property sector - fell to its lowest level since Savills and NTC Research first began collecting data back in March 2003.

Almost one-third of commercial developers reported a fall in overall activity in April, compared to just 12% that signalled a rise.

April’s sharp decline was widely attributed to unfavourable operating conditions.

Developers commented on uncertainty about the prospects for the UK economy, the ongoing credit squeeze and weaker market demand.