UK property values are in bubble territory again: analyst

London

UK commercial and residential property values are in bubble territory again and vulnerable to any tightening in credit markets, according to Mike Prew, an analyst at Jefferies Group LLC.

Investors have been paying too much for real estate outside southeast England in the "delusional" belief that rents will climb strongly, Mr Prew said in a note to clients. He downgraded retail specialists Hammerson plc and Intu Properties plc to "sell" from "hold" because income at some shopping malls is falling.