I was wondering of anybody had heard anything on the likely direction of interest rates in the UK. some people are saying that inflation is not that bad there and that the cycle may have topped out. The reason I ask is that certain FT100 quoted property companies (which shall remain nameless because of house rules on stock naming) are trading at an over 30% discount to net assets despite having well located properties mostly let on long leases with good rental growth potential and development angles. I realise that the scope for yield compression in the UK market has probably run thin with the cost of borrowing being at least 1.5 times the yield on Grade A assets. 30% discount seems excessive. I'd welcome views on the direction of the market.