FINANCE: UK property total returns showed signs of slowing in August, returning 1.4% in August compared with 1.6% in July, according to IPD.
This shows the UK property market recovery is “easing up” but remains buoyed by positive investor sentiment, said Phil Tily, executive director and head of UK and Ireland, IPD.
Capital value growth slipped to 0.9% in August, compared with 1.1% the previous month.
Industrial property continued to outperform other sectors, with a 1.8% total return during the month, of which 0.5% was income return.
However, August was the first month since 2013 that bonds and equities have outperformed the real estate total return, bringing in 2.8% and 2% respectively.
Property values have now grown by 12.8% over 16 consecutive months, but remain 30% below peak levels seen in 2007.
sophia.furber@estatesgazette.com
