The All Property Average Yield rose again this quarter, by 0.1 percentage point. However, the Property-Gilt yield gap has widened with the latter's increase of 0.4 percentage point.
The Office & Industrial sectors experienced more yield movement than in the previous quarter. In the Office sector, Central London & Northern regions' rates decreased, though not significantly enough to affect the overall sector figure.
Nearly half of the industrial sector regions fell by 0.1 percentage point, over the quarter. The only increase was recorded in Scotland, which also provided the only 12-month increase in both Office and Industrial sectors.
In Retail, increases were recorded nationwide, apart from Central London. At 0.6 percentage point, the South East experienced the largest 12-month rise of any location. This sector retained the largest rise over both the quarter and year.
A revision of our previous calculations has resulted in amended figures for Office & Retail data, relating to the last eighteen months. Specific figures which have altered, in the Office sector, are May 95, Aug 95 and Feb 96. In the Retail sector, Nov 95 has been re-calculated.
AVERAGE YIELDS
%
May Aug Nov Feb May Aug Nov Feb May
1994 1994 1994 1995 1995 1995 1995 1996 1996
Shops 5.9 6.0 6.0 6.2 6.5 6.5 6.6 6.7 6.9
Offices 6.9 7.0 6.9 6.9 6.9 6.9 6.9 6.9 6.9
Industrial 7.9 7.9 8.1 8.4 8.5 8.5 8.5 8.5 8.4
All Property 7.2 7.2 7.3 7.4 7.5 7.5 7.5 7.6 7.7
Gilt Yield 8.3 8.7 8.8 8.7 8.6 8.4 8.2 7.9 8.3
Equity Yield 3.7 3.8 3.9 4.1 4.1 3.9 3.9 3.7 3.7
Actual
Change
Feb 96- May 95-
May 96 May 96
Shops 0.3 0.4
Offices 0.0 0.0
Industrial -0.1 0.0
All Property 0.1 0.2
Gilt Yield 0.4 -0.3
Equity Yield 0.0 -0.4
AVERAGE YIELDS
%
May Aug Nov Feb May Aug Nov Feb May
1994 1994 1994 1995 1995 1995 1995 1996 1996
All Shops 5.9 6.0 6.0 6.2 6.5 6.5 6.5 6.7 6.9
Central London 5.0 5.0 5.1 5.1 5.2 5.2 5.2 5.2 5.2
Inr Sub London 8.4 8.4 8.5 8.7 9.0 9.1 9.1 9.2 9.4
Otr Sub London 6.9 6.9 6.9 7.1 7.3 7.4 7.4 7.5 7.7
Sub London 7.6 7.7 7.7 7.9 8.2 8.2 8.2 8.4 8.6
London 6.6 6.6 6.7 6.8 7.0 7.0 7.0 7.0 7.1
South East 5.3 5.4 5.4 5.6 5.9 6.0 6.0 6.1 6.5
South West 5.0 5.1 5.1 5.3 5.6 5.6 5.6 5.8 6.0
East Anglia 5.1 5.2 5.2 5.4 5.7 5.7 5.7 5.9 6.1
East Midlands 5.4 5.5 5.5 5.7 6.1 6.1 6.1 6.3 6.6
West Midlands 5.0 5.1 5.1 5.2 5.4 5.4 5.4 5.5 5.7
Wales 6.1 6.2 6.3 6.5 6.7 6.8 6.8 6.9 7.2
North West 5.4 5.5 5.5 5.7 5.9 6.0 6.0 6.0 6.3
Yorks & Humbs 5.4 5.4 5.5 5.7 5.9 6.0 6.0 6.2 6.4
North 5.5 5.6 5.6 5.8 6.1 6.2 6.2 6.3 6.4
Scotland 6.0 6.3 6.3 6.2 6.3 6.4 6.4 6.4 6.5
Actual
Change
Feb 96- May 95-
May 96 May 96
All Shops 0.2 0.4
Central London 0.0 0.0
Inr Sub London 0.2 0.4
Otr Sub London 0.2 0.4
Sub London 0.2 0.4
London 0.1 0.1
South East 0.4 0.6
South West 0.2 0.4
East Anglia 0.2 0.4
East Midlands 0.3 0.5
West Midlands 0.3 0.4
Wales 0.3 0.5
North West 0.3 0.4
Yorks & Humbs 0.2 0.5
North 0.1 0.3
Scotland 0.1 0.2
%
May Aug Nov Feb May Aug Nov Feb May
1994 1994 1994 1995 1995 1995 1995 1996 1996
All Offices 6.9 7.0 6.9 6.9 6.9 6.9 6.9 6.8 6.8
West End 5.4 5.4 5.4 5.4 5.3 5.3 5.3 5.3 5.3
Holb/M'bone 7.1 7.1 7.1 7.0 6.8 6.8 6.8 6.8 6.8
Central City 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3
Fringe City 7.1 7.1 7.1 7.0 7.0 7.0 7.0 7.0 7.0
Central London 5.9 5.9 5.9 5.9 5.9 5.9 5.9 5.9 5.9
Sub London 7.0 7.0 7.0 6.9 6.9 6.9 6.9 6.8 6.8
London 6.2 6.2 6.2 6.2 6.1 6.1 6.1 6.1 6.1
South East 7.0 7.0 7.0 6.8 6.8 6.8 6.8 6.8 6.8
South West 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5
East Anglia 7.5 7.5 7.3 7.2 7.3 7.3 7.3 7.3 7.3
East Midlands 7.9 7.9 7.7 7.7 7.8 7.8 7.8 7.8 7.8
West Midlands 7.4 7.4 7.3 7.3 7.3 7.3 7.3 7.3 7.1
Wales 8.3 8.3 8.2 8.2 8.3 8.3 8.3 8.3 8.2
North West 8.2 8.2 8.0 8.0 8.0 8.0 8.0 8.0 7.9
Yorks & Humbs 7.6 7.6 7.5 7.5 7.5 7.5 7.5 7.5 7.4
North 8.3 8.3 8.2 8.2 8.3 8.3 8.3 8.3 8.2
Scotland 6.5 6.7 6.6 6.6 6.7 6.7 6.8 6.8 6.8
Actual
Change
Feb 96- May 95-
May 96 May 96
All Offices 0.0 -0.1
West End 0.0 0.0
Holb/M'bone 0.0 0.0
Central City 0.0 0.0
Fringe City 0.0 0.0
Central London 0.0 0.0
Sub London 0.0 -0.1
London 0.0 0.0
South East 0.0 0.0
South West 0.0 0.0
East Anglia 0.0 0.0
East Midlands 0.0 0.0
West Midlands -0.1 -0.1
Wales -0.1 -0.1
North West -0.1 -0.1
Yorks & Humbs -0.1 -0.1
North -0.1 -0.1
Scotland 0.0 0.1
%
May Aug Nov Feb May Aug Nov Feb May
1994 1994 1994 1995 1995 1995 1995 1996 1996
All Industrial 7.9 7.9 8.1 8.4 8.4 8.5 8.5 8.5 8.4
London 7.3 7.3 7.5 7.8 7.8 7.8 7.8 7.8 7.7
South East 7.0 7.0 7.2 7.5 7.5 7.5 7.5 7.5 7.5
South West 7.6 7.6 7.9 8.2 8.2 8.2 8.2 8.2 8.2
East Anglia 7.5 7.5 7.8 8.2 8.2 8.2 8.2 8.2 8.2
East Midlands 7.3 7.3 7.6 8.0 8.0 8.0 8.0 8.0 7.9
West Midlands 7.7 7.7 7.9 8.2 8.2 8.2 8.2 8.2 8.1
Wales 8.1 8.1 8.3 8.6 8.6 8.6 8.6 8.6 8.6
North West 8.0 8.0 8.2 8.5 8.5 8.5 8.5 8.5 8.4
Yorks & Humbs 7.9 7.9 8.1 8.4 8.4 8.4 8.4 8.4 8.3
North 8.5 8.5 8.6 8.8 8.8 8.8 8.8 8.8 8.8
Scotland 8.4 8.7 8.8 8.5 8.6 8.8 8.8 8.9 9.0
Actual
Change
Feb 96- May 95-
May 96 May 96
All Industrial -0.1 0.0
London -0.1 -0.1
South East -0.1 -0.1
South West 0.0 0.0
East Anglia 0.0 0.0
East Midlands -0.1 -0.1
West Midlands -0.1 -0.1
Wales 0.0 0.0
North West -0.2 -0.2
Yorks & Humbs -0.1 -0.1
North 0.0 0.0
Scotland 0.0 0.4
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information please contact Guy Weston on 0171 629 7666 extension 2376, or write to him at Hillier Parker, 77 Grosvenor Street, London W1A 2BT.
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