U.K. Commercial Property Falls for 12th Month on Economic Pain
U.K. commercial real estate values fell for the 12th consecutive month in October as a sluggish economy persisted, Investment Property Databank Ltd. said.
The average value of stores, offices and warehouses declined 0.3 percent from September, led by retail and warehouse properties, London-based IPD said in a statement today. Total return, which combines changes in real estate values and rental income, was 0.3 percent in October, up from 0.2 percent in September.
“Twelve months of falling capital values marks another rather unfortunate milestone for the U.K. property sector, ” Phil Tily, a managing director at IPD, said in the statement. “There has been some improvement in underlying performance for the last few months.”
The U.K. economy came out of the first double-dip recession since the 1970s in the three months through September. Bank of England Governor Mervyn King said today the economy may shrink in the current quarter and the National Statistics Office said jobless claims rose at the fastest pace in more than a year and job creation slowed.
The IPD index was compiled from appraisals of 3,496 properties valued at 32.2 billion pounds ($53 billion) at the end of October.
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