Wednesday, June 27, 2007

UK property market slowdown

LONDON (Reuters) - Investors have already seen the best of the capital returns from the UK property market and it is hard not to see the market slipping back, one of Europe's biggest property fund management firms said on Wednesday.

"Clearly the capital growth we've had in the past is behind us. Things are pretty flat, and people are unclear if it will stay fairly flat or whether it will fall," Nick Mansley, director of property strategy and indirect investment at Morley Fund Management, said at the Reuters Real Estate Summit in London.

"Some parts are showing rising values and some parts are showing falls. It (the property market) will be influenced by swap rates and rising yields, which have risen so rapidly. The market can't shrug these off ... It's difficult to see the property market in the UK not slipping back."

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