It's official. The UK business property recession is over.

Figures just published by the RICS (Royal Institution of Chartered Surveyors) show a broad-based rise in activity across the office, retail and industrial sectors - and few places are showing greater demand than in Yorkshire.

Inquiries for premises rose at their fastest pace since the stock market high of 2000.

Surveyors, who are often the first to spot emerging trends in business and industry, reported a second consecutive quarterly rise in businesses occupying new premises.

Surveyors in the Yorkshire and Humber region reported increasing demand for office, retail and industrial space, with a lack of industrial development land available.

Nationally, 22 per cent more chartered surveyors reported a rise in occupier inquiries than a fall - up from nine per cent in the previous quarter. A rise in new sales and lettings to occupiers was reported by 11 per cent more surveyors - up from four per cent. Surveyors' expectations of sales, lettings and rental values over the next quarter, also increased.

Recovery was further underlined by better demand conditions in the central London office market, but the biggest rise in activity for offices was in the Yorkshire region, where surveyors also reported a fall in availability of floorspace.

But some Yorkshire surveyors are still reporting over-supply in the office market. Michael Hare, of Feather, Smailes and Scales, in Harrogate, said: "Supply is still exceeding demand, with total availability in the area in excess of 400,000 sq ft."

The lack of industrial development land was highlighted as an issue by surveyors in York. Richard Flanagan of Lawrence Hannah and Skelton said: "There is still an alarming shortage of industrial property available, whether existing, new or under development.

"York's green belt review still plods on with no end in sight. More land allocation is needed urgently."

Incentive packages have ceased to rise but have steadied at a level which maintains the favourable bargaining position for tenants.

Updated: 13:22 Tuesday, April 27, 2004