Muted capital growth in September – IPD
September was another month of modest capital growth, says IPD. Its UK Monthly Index recorded just 0.2% of capital growth for the month, taking the 12-month change to 14.2%. This growth, together with a 0.6% income return, delivered a monthly total return of 0.7%.
“The market has pushed values back up to a certain level on the basis that the correction overshot; the near-plateau which we now appear to have reached reflects the continuing uncertainty over property fundamentals and whether the UK economy will enter a double-dip recession,” explained Ian Cullen, co-founding director at IPD.
By sector, retail property and office space delivered 0.2% capital growth, in line with the broader market, while the industrial sector continued to lag behind with capital depreciation at -0.1%.
