UK commercial property prices are in the midst of a 10% downward correction, Savills chief executive Aubrey Adams said yesterday. The Financial Times. The Independent. The Daily Telegraph. The Times

’We may see yields moving out 25 to 50 basis points, which is probably where the market should be,’ he said.

Savills reported strong transaction levels in the first half – it advised on the £660m sale of the Citypoint office tower – and said volumes held up in July and August.

But Adams warned that the sector had been slowing down months before the credit crunch and leveraged property buyers have in effect been squeezed out of the investment market.

He added that it was impossible to know whether the market would have a soft or hard landing. ‘We normally have a strong finish in the final quarter and the feeling is that maybe this year it won’t be strong if the market is slowing.’

Pretax profits were 7% to £33.2m (£31m) in the six months to 30 June on revenue up 35% to £284m (£211m). Earnings per share edged higher to 17.8p (17.2p) and the interim dividend is up to 6p (5p).