• As the table shows, prime yields stayed at their July2008 level in August, with the expectation that for the majority of the sectors there is further softening to come.
• The lack of movement in August is more a reflection of lack of activity in what was a very quiet month, than any change in investor sentiment.
• IPD’s average yield measures continue to lag the market, though the trend is still outward.  As at the end of July 2008 the average initial yield stood at5.77% and the average equivalent yield was6.94%.
• It is worth noting that according to IPD, rental growth slowed sharply in July, pulling the annual All Property total return down to -16.12%.

Full Market in minutes Savills PDF below

Market in minutes August 2008 PDF