LISTEN: UK property markets are showing signs of stabilisation according to the latest IPD UK Monthly Property Index from MSCI.

“All Property” total returns recovered from a slight slowdown in April to a 1.2% return in May, led by a recovery in office investments.

Returns on offices outside of London helped the market stabilise but overall Colm Lauder, senior associate at MSCI, says improving rental incomes have underpinned the current levels of growth.

Retail investments continue to lag those of offices and industrials at 0.7% total returns but out of London lauder says that the risk seen in retail income stream is diminishing and helping investors develop more confidence in the sector.

Industrials returned 1.3% over the month compared to 1.2% as the normally volatile investment sector saw further stability in both its income and capital growth levels.