Commercial Finance Specialists

The UK commercial property market enjoyed its largest monthly capital growth in December, according to the IPD UK Monthly Index.

Investors are likely to feel more confident about their commercial mortgage prospects after the largest monthly capital growth in the IPD's history was recorded.

The market benefited from a three per cent monthly gain, the fifth in succession, amounting to compound growth of 8.8 per cent that lifts the UK commercial property market into positive territory, according to the IPD UK Monthly Index.

This three per cent gain is higher than the last record figure, recorded 16 years ago in the property recession in December 1993.

Development investment returns across the sector also outperformed bonds at 2.2 per cent.

The first capital growth occurred in August at 0.2 per cent, following easing rental pressure.

Across sectors, offices began its recovery later than the retail sector, moving into positive territory in July and September respectively.

Capital growth for the year still remains negative at -5.6 per cent.

These latest figures follow the publication of new data from CB Richard Ellis, which indicated that office property investment yields fell across Europe in the fourth quarter of 2009.