News of the effective coronavirus vaccine buoyed real estate firms for the year ahead, the Lloyds Bank UK Recovery Tracker found.

Two fifths (43%) predicted that their output would rise in the next 12 months, up from a third (30%) in October.

Real estate output declined (40.6) output during November, after the UK entered a second lockdown and demand for commercial property rentals fell.

Jeavon Lolay, head of economics and market insight, Lloyds Bank Commercial Banking, said: “While the performance of UK services businesses has been acutely affected by the tightening of restrictions and national lockdown measures, there were also positive signs of resilience for the broader economy as a range of sectors reported stronger growth in November.

“It shows that not only were the mandatory restrictions less onerous than in the spring but that businesses have also adapted well during the pandemic.

“The news of an effective vaccine saw business expectations improve markedly last month, potentially helping to reverse the fortunes of consumer facing industries that have borne the brunt of Covid-19 restrictions.

“The start of vaccinations in December should help sustain and hopefully bolster this increase in confidence for the year ahead.”

IDX Real Estate