UK Investment Grade Property Offers Solid Returns

Investment grade residential property in the UK is on track to deliver solid returns to buyers, new research has shown. According to the first IPD UK bi-annual Residential Investment Indicator, the sector delivered....

Investment grade residential property in the UK is on track to deliver solid returns to buyers, new research has shown.

According to the first IPD UK bi-annual Residential Investment Indicator, the sector delivered a solid 4.7 per cent return over the six months to June this year.

IPD added that if the rate of return remained the same for the second half of 2010, investors would be able to capitalise on an annualised rate of return for 2010 of 9.6 per cent.

This is compared to the previous two years, during the worst of the property recession, where the annualised return was -3.3 per cent.

The solid return demonstrates the strength of the residential sector in delivering robust returns in a rising market.

"While the six-month returns under-perform the broader commercial property market by almost five percentage points, the broader market fell much more substantially during the cycle and therefore benefited more from the subsequent rebound," says Mark Weedon, head of UK Residential Services at IPD.

"Residential performance during the first six months of 2010 continues to reflect the solid returns and lack of volatility which investors have come to enjoy and expect."ADNFCR-3415-ID-800056035-ADNFCR

- Thursday 09 September 2010

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