Property performance improved markedly in February, indicating that the worst of the post-credit crunch downturn has passed.

The all-property return for February was -1%, according to the latest Investment Property Databank monthly index, far better than the -1.6% return in January and the -3.7% in December.

Capital values fell by 1.5% in February after a 2% fall in January and a 4.2% fall in December.

Performance was similar across the three main sectors. Continuing the trend seen since July, income return edged up in every sector bar industrial, where it remained at 0.5%.

Angela Sheahan, IPD’s research manager said: ‘The re-pricing of property eased in February, but this should not make us complacent: UK commercial property remains in its most rapid and severe correction since the early 1990s recession’.