UK commercial property capital growth rose
fractionally in the first month of the New Year, at 0.1%, according to the
IPD UK Monthly Index, as yields and rents continued to virtually stagnate.
A fourteenth-consecutive income return of 0.6% helped to
deliver a 0.7% total return in January, while the 12-month change in capital
values has dropped to 6.0%, down from 6.9% the previous month. Over the month,
rental growth edged just below zero, while equivalent yields were stable for the
fifth-consecutive month, at 7.4%.
The influence of yields on capital values, as measured by
yield impact, slipped to 0.2%.
Phil Tily, Managing Director for UK & Ireland, said: "It‟s a case of 'New
Year, Old Story' for the first IPD UK monthly performance figures for 2011. At
the headline level, the UK commercial property market could continue to remain
lacklustre over the months to come, masking a polarisation of market performance
by geography and asset yield profile."
The IPD UK Monthly Property Index is based on a
sample of 3,630 properties covering £33.1bn at the end of January 2011.