Total returns on the IPD UK Monthly Index fell for the third consecutive month in October, dropping 1.5% month-on-month after sliding 1.2% in September. The October performance was the second-worst since the index began in January 1987, beaten only by the performance in May 1990, IPD Impulse said.
Total returns on the IPD UK Monthly Index fell for the third consecutive month in October, dropping 1.5% month-on-month after sliding 1.2% in September. The October performance was the second-worst since the index began in January 1987, beaten only by the performance in May 1990, IPD Impulse said.
October's monthly returns were dragged down by a 1.9% fall in capital values, again the largest decline after May 1990. Rental value growth was still positive in October, but slipped to 0.2% from 0.4% in September. Total returns fell due to a rise in yields, resulting in a negative yield impact of 2% on capital value growth.
In October, annual total returns were below 10% in all property segments for the first time since June 2002. Total returns for offices were still running at 9.9% year-on-year, but annual returns to retail property had fallen to 1.7%, the worst performance since April 1996. Annual income returns remained steady, coming in at 4.6%, 4.9% and 5.7% in the retail, office and industrial sectors, but annual capital growth is decelerating rapidly, IPD said.
