The deterioration in UK commercial property values eased slightly in July, with values falling by 0.4%, compared with the 0.5% drop recorded in June.
Income return during July was 0.6% – up from 0.5% the previous month – contributing to a total return of 0.2%, according to the latest IPD UK Monthly Property Index.
It was a bad month for City offices, which recorded their second consecutive monthly fall in values for the first time in three years, dropping by 0.2%.
In the past three years they have seen cumulative growth of 36%, but this tailed off in 2012. Values rose by just 1.7% in the first five months of the year and fell by 0.6% in June and July.
The West End office market maintained its strong position, with a 0.4% increase in rents contributing to a 0.5% increase in capital values. It is now the only area of the UK recording consistent growth, despite values across the UK falling by 2.5% since November last year.
Retail returned 0.1% during July, following two months of negative returns.
