IPD: London continues to grow amidst UK slowdown (UK)
Thursday 17 May 2012
Central London offices, retail and industrial units remain the only areas of the UK commercial property market recording a positive growth in values, according to the IPD UK Monthly Index.
Despite London’s continuing growth, values for the UK market as a whole fell by a further -0.3%. This is the sixth consecutive month of negative growth for the UK property market, amounting to a cumulative -1.1% since November 2011. Overall, total return for April remained positive, at 0.2%.
Over the last six months values have fallen in some sectors by up to -6.5% (regional shopping centers), and in the South West office market by -4.6%
Phil Tily, Managing Director of IPD UK and Ireland said, “Without the impact of London on returns, which remains the power house of the UK property market, the declines across the UK would be even more apparent. However, confidence in the Capital, and its ability to keep growing, should lend some assurance to the industry. Despite concerns regarding the sustainability of pricing, notably in the City office market, the capital remains buoyant. Values for City offices actually increased by 0.4%, their strongest growth since September 2011.”