Modest levels of capital growth across all sectors in March, amounting to 0.3%, 19 basis points higher than in February, were therefore entirely driven by yield movements, with yield impact at 0.4% for March.
Phil Tily, Managing Director for UK & Ireland, said: "Results are again showing mixed signals, with slightly improving capital growth entirely dependent on investor sentiment, while positions for rental values have weakened."
On a quarterly basis, capital growth increased marginally during the first three months of the year, by 0.6%, just ten basis points more than the 0.5% recorded in Q4 2010. Rental values remained unchanged over the quarterly period, with growth again entirely dependent on yield adjustments.
Tily said: "The modest increase in capital values in March led to a 2.3% total return for Q1, just a ten basis point increase on the 2.2% we saw in Q4."
Since capital growth turned positive, 20 consecutive months of growth have seen values now recover by 17.0%
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