London-based property giant Liberty International has reported a fall in the value of its £8bn (€10.1bn) property portfolio over the first half of the year and has predicted the UK property market will continue to struggle after months of falling investment returns in the sector.

Patrick Burgess, chairman of Liberty, said that the 7.4% fall in its investment property valuations was almost entirely driven by yield shifts rather than changes in rental values. As a result of the falls, the company's net asset value per share has declined from 1264p to 1095p.