UK property values up 0.1pc in August

LONDON: UK commercial property price growth remained steady at 0.1 percent in August, with offices outperforming retail and industrial and taking the rise in UK property values to 25 consecutive months, research showed.

Investment Property Databank's monthly index showed UK offices produced total returns of 0.8 percent in August, outstripping the 0.6 percent generated by industrial property and 0.5 percent from retail.

Across all commercial property classes, total returns which include the gains in property values and income returns, were 0.6 percent for August, IPD said.

"Retail assets continued to see declining values during August, as the spate of economic difficulties, that impact on consumer spending, continued," said Phil Tily, managing director of IPD UK and Ireland.

IPD data showed offices saw capital growth of 0.2 percent in August, while retail and industrial produced nil returns.

"While there continues to be a spread in improved performance for offices throughout London, the same cannot be said for retail, where outside of the city centre, yields have begun to edge out over the last two months," Tily said.

Copyright Reuters, 2011