RICS survey points to higher UK property yields from Iran war

The Q1 RICS survey showed surveyors don’t expect the Iran conflict to have an impact on occupier demand across any of the major sectors. That said, there was a deterioration in capital value expectations, which implies surveyors now expect yields to be higher. That is more pessimistic than our view that, assuming the conflict comes to an end promptly and doesn’t lead to further damage to energy production facilities, investors will look through a temporary spike in interest rates.