Investment grade market let residential property delivered a solid 4.7% six-month total return to June, according to the inaugural IPD UK Biannual Residential Investment Indicator.

Investment grade market let residential property delivered a solid 4.7% six-month total return to June, according to the inaugural IPD UK Biannual Residential Investment Indicator.

Assuming the same return over the second half of this year, this would deliver an annualised rate of return for 2010 of 9.6%. Over the two previous years, during which the worst of the property recession and recovery manifested, the annualised return was -3.3%, based on the IPD UK Annual Residential Index.

This is the first ever bi-annual Residential Indicator published by IPD, reflecting the need for greater transparency for residential property investors as this sector of the market continues to grow in popularity among institutional investors. The index captures 4,713 properties, worth just under £1 bn, on its first outing.