Capital growth in the UK finally drew to a close in October as the continuing crisis in the eurozone, and the very real doubts about its resolution, took their toll on occupier demand and investor sentiment. Total return for October was almost entirely income driven, at 0.6%, according to the IPD UK Monthly Index.

For the first time since April rental value levels stepped down, while yield compression slipped to negligible levels.

'Central London retail and office values have been driving returns since the recovery began. However, in the last few months there have been increasing concerns over a pricing bubble in the capital, which the European economy could further exacerbate,' said Phil Tily, IPD UK and Ireland managing director.

Central London offices saw capital growth slow to 0.4%, due to cooling rental value movements. Outside of the centre, the rest of London offices - which had for the last six months seen value increases of 1.2% as investors looked for more competitively priced assets - saw values and rental growth slow to zero in October. Outside the South-East office values slipped further.

Retail values, though flat, saw a slight improvement on the -0.1% recorded in September. However the growth in central London retail values fell 80 basis points, to 0.7%. Industrial values saw a slight decline after posting positive results in September.