J.P.Morgan bullish on outlook for UK property stocks

Analysts at J.P.Morgan sounded a 'bullish' note on the outlook for UK property stocks.

In a research note written the day before, but published on Thursday, they noted similarities with the 1990s and highlighted two conditions which in their opinion "seemingly" catalysed listed UK property stocks' comeback in 1992.

The first is that there had been a trough in values in sight - five months in the 90s - and secondly the Bank of England's last rate hike before soon beginning to cut.

"Following this morning’s UK inflation print fears around rates are moderating, and combined with low positioning in the sector, we see more to go for in UK listed property should this slowing inflation trend continue," they said.

From trough to peak, listed UK property stocks had rallied 136% over 19 months versus the FTSE 100, the analysts added.

They estimated that the four overweight stocks in their coverage universe, which included British Land, GPE, and Workspace offered 31% upside.

Derwent London, Tritax, and Segro meanwhile offered over 25% upside.