UK property returns 8.1% in 2011

By Bridging Loan Directory -

Masthaven Bridging Finance



The total return for the UK property sector in 2011 was 8.1%, according to the IPD UK Monthly Index. Capital growth slowed to 1.2%, while income return amounted to 6.8% according to Property Funds World.

Capital values fell for the second consecutive month in December, by 0.1%, making growth just negative overall for the last quarter of 2011. Rates of return, which stood at 0.5% for all property in December, were down in all three sectors of the market.

Phil Tily, Managing Director of the UK and Ireland, said:

“While growth for the year remained positive, the outlook for 2012 is less than ideal. During the last three months of the year, as the Euro situation worsened and the threat of recession seemed more likely, returns tailed off considerably. The retail sector was the hardest hit in Q4, seeing values fall by -0.3%, whilst industrial values fell by -0.2%. Office growth remained positive, at 0.2%, but even this represented a considerable slowdown.”