Listed real estate shares fell sharply yesterday after an unexpected rise in inflation dashed hopes of an early cut in interest rates.
City analysts had expected the rate to drop to 3.8%, but the prices of tobacco and air fares pulled it higher yesterday, rising to 4% from last month’s 3.9%.
Of the FTSE 350 real estate companies, Big Yellow saw the steepest fall, down 4.16%, followed by Landsec at 4.1%, British Land at 3.94% and Unite Students at 3.6%.
Great Portland, SEGRO and Derwent London also saw falls of more than 3%.
The Bank of England monetary policy committee, which sets interest rates, will next meet on 1 February.
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