SLOWLY but surely, we’re likely to see the return of more significant activity to the property sector following a year of limited movement.

The past year has been typified by a period of consolidation for property investors and developers, with the accent very much on managing their cashflow and ensuring that their businesses were able to ride a very damaging recession from the fall-out of the financial crisis.

The sector will continue to adopt a cautious approach to development activity in 2010, in addition to undertaking a policy of reassessment and review of their business models. The successful investors in property and development will be those who are developing a clear perspective on the future investment and development environment to shape their activities to reflect the changing market.

The task now facing investors is to carry on maintaining cashflow while making an assessment of new development opportunities in a rapidly changing investment and development market.

When viewed against a landscape of funding difficulties, a reduction in government subsidies for regeneration and development and the creation of the new Homes & Communities Agency, combined with election year, it is clear that this will be a time of creativity and innovation, as we remain in a challenging environment for both investors and developers. The year ahead will see investors retain a conservative approach to their activity while also exploring new routes to development and finding potential new partners, with public and private partnerships likely to be a key feature for investment funding.

Don’t be surprised to see a measured increase in investment activity, as pressures may increase on cashflow towards the end of the financial year as some investors may seek to repair their balance sheets in quarter four.

This will be on the minds of investors and developers in the North-West this year. Funding lines will be crucial to take advantage of any opportunities and to deliver new business strategies.

These remain uncertain times, so shrewd investors know they need to ensure they have secure lines of funding, creating potential new funding opportunities. The recession will create new opportunities, the timing of which may be slow to appear.