December saw property returns fall to their lowest since 1986, data from the Investment Property Databank has revealed.
The UK market fell by 3.7 per cent in the month before Christmas and by 9.5 per cent since the summer- office space performed the worst, falling 4.7 per cent in December alone.
Director of the IPD, Ian Cullen was shocked by how quickly the market had changed direction.
"What has really staggered me is the pace of the turnaround. Up until May last year, total returns were up 14 per cent," he told the Telegraph.
The IPD monthly figures are based on a sample of more than 4,000 properties, which combined account for 16 per cent of the total UK market and are worth over £51 billion.
Both commercial and residential property markets have had a poor start to the new year – the Royal Institution of Chartered Surveyors (RICS) has warned that December’s residential property drop was the worst since the recession of the 1990s.