UK property returned 1.1% in the first three months of 2013, an increase of 0.5% since the last quarter, according to IPD's latest figures.

Income returns held steady at 1.7% while capital values fell by 0.6%, a slower rate of decline than has been noted in previous quarters. Rents fell slightly, by 0.1%.

By comparison, equities returned 9.7% over the quarter, while bonds returned just 1%.

The monthly return for March was 0.3%, based on a 0.2% fall in capital values and an income return of 0.6%.

It was another strong quarter for London, with retail and office units in the West End delivering the highest returns, of 3.0% and 1.9% respectively, down from 3.2% and 2.9% in Q4.

However, the performance of property outside London remained muted.

IPD's managing director for the UK and Ireland, Phil Tily, said: "At the headline level we are still seeing subdued returns adversely affected by negative capital movements outside of London, and as the chancellor's Budget showed last month, there is no quick fix for economic recovery outside of London.

"Though the UK economy has managed to avoid a triple-dip recession, it is nevertheless going to be a long road to recovery for the commercial property sector."