No sign yet of a peak for capital values

Investor demand for UK property shows few signs of waning. So with yields edging lower and occupier market fundamentals strong, the market is unlikely to slow materially in the second half of this year. However, with room for further yield compression limited and interest rates likely to begin to rise next year, the pace of the upswing should moderate. But for now there are few signs of a trigger for a more abrupt adjustment in property values.