Rental growth slowed down across all three sectors of the property market in April, according to the latest IPD figures.
But capital values, which were hit by the rise in stamp duty after the Budget, bounced back and pushed the total return up to 1.2%, compared with 1.0% in March.
IPD’s monthly index shows that rents grew by 0.3% in April, down from 0.8% in March. The slowdown was sharpest in offices, where rental growth fell from 1.1% to 0.3%.
But over 12 months, overall rental growth remained the same at 6.2%.
Capital growth improved to 0.5%, up from 0.3% in March, as yields fell. The retail sector showed the biggest rise, despite the slowdown in rental growth. The majority of investment measured by the monthly index (£45m) went into shops.
