Property funds feeling the crunch


Swip Property Trust will be the latest property fund to register a loss, it has been reported.

Losses over the last six months are expected to be close to 20 per cent – the fund could follow New Star’s UK Property Trust, which recently fell 17.8 per cent since July.

Property managers with investments in city offices and commercial lettings are keeping a keen eye on the situation.

"The property portfolio is being valued at least twice each month until the property market returns to a more stable state. In this way, property values will be kept as current as possible so that all unit holders are treated fairly,” New Star announced in a statement.

Private property in London also had a difficult month – according to property comparison site, Rightmove, prices fell by 3.2 per cent across England but in the most affluent parts of the capital, it dropped by 6.8 per cent.

The Confederation of British Industry has downgraded its forecast for economic growth. In its latest quarterly forecast it predicted a growth rate of two per cent, one-fifth less than in September.