IPD: Little change in August, despite wider market volatility (UK)
Friday 16 September 2011
Despite wider economic shudders throughout August, capital growth remained steady at 0.1% in the IPD UK Monthly Index, ushering in 25 months of positive value movement in the UK property market.
“Retail assets continued to see declining values during August, as the spate of economic difficulties, that impact on consumer spending, continued,” said Phil Tily, IPD UK and Ireland Managing Director.
“However, despite the rather gloomy economic headlines, most areas of the market have held up surprisingly well, and rental growth has not dipped into negative territory, remaining level at zero.”
Focusing on London, there are varying themes within the retail and office parts of the market.
In the office sector, London offices outside of the center of the city continued to see an increase in capital growth, now up to 0.5%, which is now comparable with the rate of growth seen in the Central London office segment.
Contrast that with retails, where growth in Central London standard shops continued, at 0.6%, while standard shops in the rest of the capital have gone into decline, with values down -0.2% this month.
Tily continued: “While there continues to be a spread in improved performance for offices throughout London, the same cannot be said for retails, where outside of the city center, yields have begun to edge out over the last two months
“Elsewhere in the retail market we have begun to see a slight decline in the value of shopping centers in London, where pricing is down -0.2%, compared with further capital right-downs, of -0.7%, in the rest of country.
25 consecutive months of positive capital growth has seen values recover by 17.7%. On a 12-month rolling annual basis, capital growth has slowed to just 1.8%.
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United Kingdom
