UK investment volumes remained subdued in July with £2bn transacted during the month, according to Savills.

The firm added in its latest Market in Minutes report that total investment for the year to date was £20.2bn, compared with £25.8bn in 2019. The all-sector prime commercial yield climbed from 5.21% to 5.23%.

However, demand for industrial assets has seen yields in this sector harden, with yields on industrial distribution assets and industrial multi-let both down 25 basis points in June at 4.25% and 4%, respectively.

Savills also reported that it was seeing signs that West End office yields may also come in from their current position of 3.75%, which could fuel investors who are seeking value to look further afield to the UK’s regional cities where yields remain at around 5%.

Richard Merryweather, joint head of UK investment at Savills, said: “We anticipate that pricing will remain competitive on core assets once they come to the market, with a strong buyer pool waiting in the wings, which should significantly boost Q3 activity compared to Q2.”