Buyers cautious as UK property sector shows signs of overheating

Fund buyers have cautioned on investing in the UK's buoyant property market, amid fears the sector may be overheating.

With the Bank of England having met last week to discuss growing concerns of a fresh housing bubble, analysts and investors have questioned how much value remains in commercial property funds, particularly in the closed-ended universe. The property sector has rebounded strongly since the financial crisis, which wiped as much as 40% off the value of some funds and led to a series of blocks on redemptions. Last month, the IPD UK Monthly index – a common measure of the UK property market – edged closer to historic highs. In August, the index reached its highest level since 2007 at 895...