UK property returns drop to 1.1%

International researcher MSCI Inc has recorded a total return of 1.1 per cent in the UK property investment market in the first quarter of 2016, well down from 2.9 per cent recorded in the same period last year.

MSCI said the decline in capital values to some degree reflected investors' wait-and-see period before the Brexit referendum in June to determine whether the UK will remain in the European Union. It may also reflect recent changes in stamp duty legislation.

MSCI earlier reported returns of 2.9 per cent in the Irish commercial property market, compared to the 6 per cent recorded in the first quarter of 2015.