A rise in real estate investment during June suggests the market is stabilising after the Covid-19 pandemic, according to analysts at Savills.

The agency said UK commercial investment activity rose by 42% in June compared with May, reaching £1.3bn and taking the total for the first half of the year to £15.6bn.

James Gulliford, Savills’ joint head of UK investment, said: “There’s some evidence that we may have passed the nadir of this cycle in terms of investment volumes in May.

“This, of course, does not change the overall story of Q2 2020 being the weakest quarter on record for UK investment activity, and we estimate that volumes in the first half of 2020 were 43% below the five-year average, but the hope is now that a corner has been turned.”

The June all-sector prime commercial property yield was stable at 5.21%, with signs that yields may harden on prime West End offices as well as industrial multilet and distribution assets. Savills said such a move is a “typical turning point” for the market.