UK – June figures from IPD indicate a cautious recovery in UK property as rising values spread beyond the capital.

While Central London remains the chief driver of performance, the regions are also showing signs of an upswing.

Overall capital values increased by 0.2%, and total returns hit 0.8%, the highest figure since March 2011.

Office and industrial markets led the way with the biggest gains during the month.

Capital growth in the office sector recorded a 0.5% rise, and returns rose to 1%.

Central London performance played the biggest part, and the South East also enjoyed substantial improvements, while elsewhere declines slowed.

Industrial market values increased by 0.5%, and returns hit 1.1%.  

Capital values climbed in six out of seven UK regions, with only the East bucking the trend.

But the retail sector continued to suffer.

The continuing decline – with overall returns of 0.5% and falls in capital values of 0.1% – was marked by a split in fortunes.

While retail warehouses, out-of-town shopping centres and Central London retail did relatively well, standard retail outside the South East and town-centre malls remained in decline.

Phil Tily, executive director and head of UK and Ireland, said regional performance was significant.

"While Central London continues to be the powerhouse of performance, it is the regional advances that are tipping the balance and leading to an overall improvement in values," he said.

IPD said increasing occupier demand had been instrumental in driving gains around the UK.

It noted that, outside London, some capital growth followed on from improved tenant demand for both office and industrial property.

But the picture is patchy across the UK.

It all depends on improving local economic conditions, according to Tily.

"Growth is by no means uniform, and valuers remain cautious," he said.

"But, as the UK economy slowly picks up, incrementally, so does property performance."

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