Fears of market decline were fuelled this week with three reports showing that returns are slowing, with the 0.5% stamp duty increase in the March Budget hitting the market.
Retail appears to be slipping the most, dragging down the Insignia Richard Ellis Monthly Index (REMI) data. It reports that capital values for the all-property index have slipped by 0.2% to 6.4% for the year to April.
Meanwhile, the Investment Property Databank UK Monthly Index shows capital returns for the year to April down 0.3% to 7.1% on the year to March.
And the May RICS Economic Brief says that although rents are continuing to grow, capital growth has dropped back compared with the last quarter of 1999.
More details in tomorrow’s Estates Gazette.
EGi News 19/05/00
