U.K. commercial real estate values fell for the 15th consecutive month in January led by a decline in retail, Investment Property Databank Ltd. said.
The average value of stores, offices and warehouses declined 0.2 percent from December, London-based IPD said in a statement today. Total return, which combines changes in real estate values and rental income, was 0.4 percent in January.
“There are some encouraging signs starting to emerge, with pockets of improvement emerging around the U.K.,” Phil Tily, a managing director at IPD, said in the statement. “With the pricing so keen for Central London assets, there may be more movement amongst investors to seek better value in the regions.”
Britain faces a muted economic recovery and a further bout of inflation, Bank of England Governor Mervyn King said yesterday. The Confederation of British Industry, the U.K.’s biggest business lobby group, also lowered its 2013 economic-growth projection to 1 percent from 1.4 percent.
The value of office buildings in the City of London financial district fell for the first time since July. Capital growth slowed in the London’s West End office and retail markets, IPD said. Retail values overall declined by 0.3 percent.
The IPD index was compiled from appraisals of 3,427 properties valued at 31.5 billion pounds ($48.8 billion) at the end of January.
Neil Callanan in London at firstname.lastname@example.org.