House of cards to crumble? Recession in the UK property market 'likely well underway'

Slow recovery 'from 2021 onwards' predicted

The UK property market is headed for a 2020 recession due to its high correlation with the economy, according to fund managers and property valuers, only adding to the woes of property investors who have found their money trapped in gated open-ended vehicles for over a month.

Since 18 March, more than £10bn of investors' money has been locked in open-ended UK property funds (PAIFs) following the introduction of a Material Uncertainty Clause (MUC) by property valuers, which meant they were unable to ascribe a value to physical property amid unprecedented levels of economic uncertainty. In a monthly update last week, most PAIF managers released statements announcing the funds will remain suspended indefinitely, due to continued valuation uncertainty. Mike Roberts, head of UK property at Canada Life Investments, whose property funds have been deferred since l...