
Leading Indicators | Changing tides: All Property total return hits two-year high
21 January 2025
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Here we look at the leading indicators in the world of economics.
for in-depth analysis into commodities, trade, equities and more with a focus on UK.
Softer inflation sparks easing in bond yields
UK inflation eased in December for the first time in three months, dropping to 2.5% and aligning with the Bank of England鈥檚 forecasts. This decline could bolster the case for a quarter-point rate cut at next month鈥檚 monetary policy meeting. In response to the softer inflation data, bond yields eased, with the 10-year UK gilt yield down -22bps over the week.
UK All Property total return hits two-year high in December
The MSCI UK All Property total return rose by +22bps m/m in December to +1.10%, marking its highest level in over two years. All sectors posted gains 鈥� with Retail leading the growth, up +31bps to +1.31%. Total returns have been supported by rising capital values. UK All Property capital values rose by +0.62% in December, up from +0.41% in the month prior.
The UK鈥檚 growth outlook has been upgraded
The IMF has upgraded the UK鈥檚 2025 growth outlook by +10bps to +1.6%, positioning it as the third fastest-growing G7 economy, trailing only the US and Canada. Supporting this growth outlook, Prime Minister Keir Starmer鈥檚 recent plans to establish the UK as an 鈥楢I superpower鈥� includes bold initiatives aimed at boosting productivity, growth, and the UK鈥檚 living standards.
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