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Specialists at Standard Life Investments and Ignis Asset Management have urged investors to look at property over a three-year horizon as stability - albeit possibly temporary - comes back to the market.

Anne Breen, head of property research at Standard Life Investments, said she expected further price falls over the 12 months.

But she added the UK could recover in advance of the rest of Europe, particularly given its practice of valuing properties more frequently than many other countries.

"Although property valuations have further to play out in this cycle before they can be described as 'fair value', investors should be tracking a range of recovery triggers which would signal an eventual recovery in the sector," she said.

"Transaction pricing, the performance of the listed real estate market and improvements in liquidity and investment flows have all been lead indicators of a recovery in previous property cycles."