The latest figures from the IPD show that commercial property values rose by 0.5 per cent again in June, as the period of slowing growth continues.
The value of UK
commercial development assets rose by 0.5 per cent again in the month of June, indicated that the period of slowing growth is to be sustained.
Following a rise of 0.8 per cent in April, May and June have both now registered 0.5 per cent raises, according to the latest data from the Investment Property Databank (IPD).
It means positive growth has been sustained for an 11th consecutive month, however the growth rate is now at its lowest quarterly average during this time period.
However, rents received by
property investment firms rose by 0.6 per cent in June, the figures show.
"Whether this proves to be the calm after a very long storm of course depends upon the course of the domestic economy and the impact that will have on both domestic and overseas investor confidence," Phil Tily, the UK and Ireland managing director at IPD.
In addition to stagnating capital growth, the Daily Telegraph claimed earlier this week that public spending cuts and their adverse effects on office space take-up means the future "looks bleak" for property investment funds.
Posted by Lisa Fear.
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