Hamish Whiteman, Director of Capital Markets at CB Richard Ellis, said: "UK institutions are holding fire in terms of property investment. The relatively bleak short-term outlook for rental value growth in the key London and South East office markets, allied to an already over-weight position in property means that most institutions are adopting a wait and see policy."

But he pointed out that institutions are not the only players in the market: private debt-financed and overseas investors remain active and this will support market liquidity over the coming months. "Property investment yields are largely static at the moment although the weight of money directed at retail is likely to result in further downward pressure on both shop and retail warehouse yields, " Whiteman said.

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