Improved investment has been reflected in the property market

Quarter three has been good for the sector. It has made strong progress, both in absolute terms and relative to the FTSE 100.

The fundamentals of property supply and demand have continued to improve, albeit from very depressed levels. More progress has been seen, at least as regards the property investment market. As for occupier market, demand and rental values typically lag any pick-up in the cycle but, even here, there have been a few pieces of better news. The improved tone in the investment market has been reflected in the return of some demand for well-let, prime property. This has been led by cash-rich property investors and some pension funds. It has not yet been enough to stop the rise in UK investment...