UK commercial property returns this year are set to be the worst for 18 years.

According to Investment Property Databank figures released today, the all-property return for the UK was -18.2% in the 11 months to November.

IPD said the largest ever annual returns loss for UK commercial property on a real return basis was -29.4%, recorded in 1974.

Ian Cullen, IPD co-founding director said: ‘With an 11-month nominal return to November of -18.2%, we are precariously close to the worst 12-month real return on record – to date that of 1974 at -29.4%.

It is the second month in a row that IPD has recorded record monthly falls in total returns and capital values, at -5.1% and -5.7% respectively.

IPD said that the combined ‘drivers of capital movement’ – yield impact and rental value growth – remained negative during November ‘explaining the observed dramatic falls in capital values’.