Property investors have halved the amount they expect to generate from their UK assets this year, new research by JP Morgan Cazenove has discovered. Reporting on the study, Property Week noted that the average expected return for 2011 was between seven and eight per cent in March, with this now falling to between three and four per cent. In addition, fewer investors now believe that there will be positive returns in 2012, the survey found.
The majority of respondents (86 per cent) also stated that they expect the IPD UK capital growth index to enter negative territory over the coming months, the publication revealed. The next monthly property index by the firm is due to be released tomorrow (October 14th), while the IPD report for the third quarter will be made available on November 1st. The JP Morgan Cazenove research also showed that the eurozone debt crisis is weighing heavily on investors, with just 69 per cent of those questioned now predicting positive returns over the next 12 months, in comparison to 94 per cent in March.