Total returns on the IPD UK Monthly Index fell by a massive 3.6% in November - the fourth consecutive monthly fall. This was also the worst monthly total return on record, beating the -1.8% recorded in May 1990 by some distance. The year-to-date return now stands at -1.8%, indicating a negative total return on the UK Annual Index for the first time since 1992.
Total returns on the IPD UK Monthly Index fell by a massive 3.6% in November - the fourth consecutive monthly fall. This was also the worst monthly total return on record, beating the -1.8% recorded in May 1990 by some distance. The year-to-date return now stands at -1.8%, indicating a negative total return on the UK Annual Index for the first time since 1992.
So far this year, commercial property values have fallen by a cumulative 7.8%, which compares to a cumulative 27% fall between 1989 and 1993. Nonetheless, in sharp contrast to the early 1990s, the occupier market remains healthy, with positive rental growth across all sectors.
'The unique coincidence of economic and financial pressures which is driving this unprecedented property market realignment makes it all the more difficult to project our IPD numbers, even into the near future. It would, however, be heroically brave to call the bottom of the market before the turkey has even been stuffed', said IPD co-founding Ian Cullen.
The IPD UK Monthly Index is based on a total of 73 balanced and specialist property unit trusts, pooled pension schemes and unit-linked insurance funds - a sample of 4,209 properties, worth over £53 bn.