Just when you thought all the news would be bad, the fund tracker Lipper said that 11 of the top 20 UK equity funds in August were real estate funds, and that nine are invested in the UK or Europe. At the root of the trend is a belief that asset prices are firming. UK commercial real estate values rose 0.2 percent in August, according to Reuters.
“Will capital values improve by 10-12 percent over the next two or three years? I would think so, and that justifies the rise in share price,” he said, noting the gap between yields and borrowing costs remained high, benefiting buyers.