Many in the world of property closely follow the results of auctions as a good prediction of where the market will go. Those who take this to the highest level closely watch the London commercial auctions following single let retail as their indicator of choice for the futures market.
The lower the yield the more capital values have increased, unless of course rents have fallen, which they have not. So perhaps the fact that these yields are falling, will be enough to increasing positive sentiment which ultimately drive the property market and UK house prices.
Property investors look for high yields and better returns as the first signs of falling commercial property yields.
February 11, 2010
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