Resolution predicts strong 2006 for property

27 July 2006
Resolution Asset Management has rejected claims by industry commentators that the second half of 2006 will see a downturn of fortunes in the property market.

Sandy Thomson, manager of the company's UK property fund, said that he expected the growth levels shown in the year to date to continue, even if not at quite the same level, during autumn and winter this year.

"For the year to date property is ahead of both equities and gilts," he said.

"Whilst we don't see quite the same strength of performance coming through in the second half, our forecast for the year remains at 15 per cent total return."

Mr Thomson also noted that growth was strongest in the south east and central London markets for both capital growth and in the rental sector.

"So far this year we've made acquisitions in the order of £85 million and have a further £40 million under offer," he added.

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