The regional recovery in UK commercial property has begun as developers and investors across the country forecast an increase in activity as we go into 2014.

A survey of 500 real estate professionals by Lloyds shows that three quarters (76%) of small and mid-market firms expect to see an increase in commercial property activity in the next three to six months.

Lloyds' twice-yearly Commercial Property Confidence Monitor also says that the recovery is starting to "trickle down" from big firms as SMEs catch the "infectious confidence" flowing from the top end of the market and London.

The research shows that positive sentiment has reached its highest level since the Monitor began in 2010.

The majority - 88% - of fund managers forecast the value of their assets to increase over the next three to six months, up from just 10% last year. Some 63% of businesses plan to up their investment levels over this same period.

Commercial property activity is not just confined to London, the report shows, with confidence rising across the UK.

Leading the charge are Scottish businesses and fund managers, 90% of whom anticipate an increase in market activity. At the same point last year, just 9% felt as confident.

The south-west follows with 86%, then the north-west at 77% and the Midlands at 75%.

"The UK market in 2013 has been stronger than many expected it to be," John Feeney, global head of corporate real estate at Lloyds Bank Commercial Banking, told Property Wire.

"It's becoming an increasingly competitive environment for developers and investors as well as the banks.

"The huge upswing in confidence among fund managers in the past year is perhaps the most significant bellwether yet of the market’s recovery and, with a majority of this cohort and large businesses looking to invest more, the momentum is continuing to gather pace."

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