Problems with the IPD property index

In a time before the credit crisis, commercial property unit trusts were much in demand. The attract...

In a time before the credit crisis, commercial property unit trusts were much in demand. The attractions of property as an asset class came to the fore in particular during the equity bear market in the early part of the century. Property offers a stable cash flow from tenants with upwards-only rent reviews, its volatility as an asset class is lower than that of equities and it is a real asset - you can walk around a building. Money flowed into property investment vehicles and was greatly helped by property unit trusts becoming eligible for Isa wrapper status in late 2005. But most importan...