CHARTERED surveyors in Yorkshire are beginning to see an increase in demand for office space, following a weak first quarter, according to a new economic analysis just published.

The survey, by the Royal Institution of Chartered Surveyors (RICS), puts the county increase in the context of the UK property market remaining favourable to tenants, despite signs that the downward trend landlords have experienced over the last three years may have turned a corner.

The most encouraging sign of improvement, says the RICS survey report, is that demand in the London office market, which has been in tailspin for two to three years, is stabilising.

North Yorkshire commercial property agents agree. Michael Hare of Feather Smailes and Scales in Harrogate said: "There is good demand for vacant space to buy for owner occupation purposes and for fully-let offices sold as investments."

Chris Robbins of Robbins Associates in North Yorkshire, said: "A desperate first quarter is now improving with increased demand, although still not at last year's level."

A demand for out-of-town warehouse space has provided a solitary bright spot in the retail sector nationally, but the picture for the Yorkshire region is brighter with agents also reporting strong rental growth for secondary shops.

Updated: 08:59 Tuesday, July 22, 2003