| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

Follow Finfacts on Twitter

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : Property Last Updated: Jul 19, 2011 - 9:10 AM


UK commercial property capital growth in second quarter lowest since Q2 2009; Capital growth up 17.3% in recovery
By Finfacts Team
Jul 18, 2011 - 5:55 AM

Email this article
 Printer friendly page

UK capital growth fell in the second quarter of 2011 to 0.4%, the lowest rate of growth since Q2 2009, according to the IPD UK Monthly Index. Capital growth has risen 17.3% in the recovery period.

Capital growth for June was 0.2% and Malcolm Hunt, UK and Ireland Client Services director, said: “While capital growth has been positive for the 23rd consecutive month, it is fractional, and likely to remain under pressure until the secondary market improves.

“Yield compression has continued at a trickle, and rents have failed to pick up the slack, remaining flat for the quarter. Continuing wider macro-economic turmoil, and the uncertainty surrounding the secondary market, has meant that outside of London growth remains largely flat or negative, as investors and occupiers continue to shy away from risk.”


Sector level rental performance remains unconvincing. Rents in both the retail and industrial sectors continued to decline, recording -0.1% and -0.2% for the quarter respectively. Rents in the office sector remained positive, at 0.4%, though outside of London fell away.

Hunt continued: “Total return, 0.7% for the month, and 2.1% for the quarter, has been driven almost entirely by income return, which has remained around 0.6% month on month.

“The importance of active management in the current market cannot be ignored, the recent spate of retail administrations being a case in point. The latest administrations could wipe up to £393 million from rent payments to UK landlords over the course of their leases, though of course actual losses are being mitigated by pro-active asset management.”


Since capital growth turned positive, 23 consecutive months of growth have seen values recover by 17.3%. On a 12-month rolling annual basis, capital growth has slowed to just 2.0%.

Related Articles
Related Articles


© Copyright 2011 by Finfacts.com

Top of Page

Property
Latest Headlines
Irish residential rents rise 9% as students face tight market conditions
Irish construction activity growth eased in July
Irish residential property prices fell in Dublin in June
Irish mortgage approvals growth fell sharply in April 2015
Irish land prices among highest in world; Noonan tax cut boosts Dublin prices
AIB cuts Irish variable mortgage rates
Dublin residential property prices rose by 1.1% in March
Global property bubble: Dublin tops 2014 global returns at 44.7%
New Irish housing units in 2015 forecast at only 10,000
Ireland: Dublin house prices up 21% in year to February 2015 after price decline in month
Prime office rents in Dublin to rise by up to 31% in 2015 after 29% surge in 2014
Irish mortgages paid in 2014 at 1976 level; Half of house sales paid in cash
Irish residential property prices fell 1.4% nationwide in January
Irish House Rents: Supply tightens in Dublin's commuter counties in Q 42014
Irish commercial property returns in 2014 among highest in world
Irish Housing: "Unique" demographics to boost demand; Shortages to rise
Irish mortgage approvals in 2014 at 36-year low; Exceed paid loans
Irish commercial property investment in 2014 was 25% above bubble peak in 2006
Irish construction continues to rise from very low base
Irish house asking prices fell back slightly in fourth quarter of 2014
Price/Earnings multiple for Dublin houses is double 1993 level
Residential property rents up almost 10% in Dublin in past year
Irish Government and vested interests lobby for easing of Central Bank's mortgage rules
Ireland tops global property price rankings six years after bust
Number of Irish mortgages paid in 2014 at 1974/75 level - a 40 year-low
Irish construction PMI survey confidence measure highest since 2000
Irish mortgage arrears decline; 38,463 BTL accounts in arrears
Irish Housing: Renting provides less security than ownership, unpredictable rents
Ireland: NAMA to redeem €1bn of senior bonds; Fund Boland’s Mill site development
Ireland: 35,000 social housing units by 2020 achievable; Rental market possibly not
Dublin house prices up 24.1% in year to October 2014
Irish home ownership to fall due to affordability
'Tara Collection' of office buildings on sale in Dublin for €263.8m
Irish Housing Rents 2014: Dublin just 10% short of 2007 bubble peak
Irish Economy: Residential mortgage approvals in 2014 as low as in 1977
Irish Construction: Fastest rise in new business for decade - not level of activity
Biggest US individual landowner responds to tax breaks in Ireland and UK
Irish commercial property annual return to September 2014 at 36.6% - income at global high
NAMA expects surplus of less than €500m - it's not a profit; 88.5% sales to US investors
NAMA selling 588 Dublin apartments - name withheld in announcement