Capital growth slowed in April to 0.1%, according to the IPD UK Monthly Index.
The slowing capital appreciation was driven by a 30 basis point fall in Retail sector growth, to just 0.1%, along with a deceleration in Industrials which saw values flat-line. Office value growth declined slightly to 0.2% as Central London Office growth slowed and values outside of London continued to see a decline.
Rental growth stabilized overall at 0.0%, after a fractional decline in March. Office rents saw a second month of zero growth, a result of the slowdown in the Central London Office market. Fractional yield compression prompted the marginal increase in values.
Phil Tily, Managing Director for UK & Ireland, said: "Capital appreciation has slowed considerably so far in 2011, amounting to only 0.7% growth over the four months so far."
"Total return has dropped accordingly in April, to 0.7%, almost entirely driven by income return. Flat or negative rental growth across all sectors and an apparent end to the re-pricing sequence meant that there was very little capital movement in April, and indeed the first four months of the year."
Since capital growth turned positive, 21 consecutive months of growth have seen values recover by 17.2%.
Tily added, "On a twelve month rolling annual basis, capital growth has slowed now to just 2.7%, as the main wave of the recovery came in Q4 2009 and Q1 2010."