Commercial property values have enjoyed their biggest monthly rise for three years, new figures reveal.

A 0.6% increase in September was the biggest leap since April 2010, according to the IPD UK Monthly Property Index.

It shows that UK offices achieved the biggest growth in values of all commercial property, with a hefty 1% rise in September following on from a 0.6% increase the previous month.

Economic growth starting in London is said to be seeping into surrounding areas of the south-east, a part of the country that is largely responsible for the growth in the office market.

The retail and industrial sectors also enjoyed capital growth though, with retail achieving a turnaround in fortunes after two years of declines as capital values went up for the second consecutive month by 0.3%.

Warehouses and shopping centres across the UK are seeing positive results under capital growth.

There was also 0.1% growth in rental values in September, the report reveals, with office rents enjoying a 0.5% increase while industrial levels remained static and retail saw a 0.1% decline.

Stephanie McMahon, head of research at Strutt & Parker said: “With the economy looking to be on a growth trajectory, albeit muted, it is encouraging to see investors expanding their requirements out of London. South-east offices have attracted very high levels of interest and demand since the beginning of 2013 and as a result have witnessed a significant yield shift for the best product, ideally with a long income. It is this yield hardening which has driven performance not, except in a few cases, rental uplift. As such, for shorter income assets, the potential for expansionary demand and rental growth must be understood.”

Phil Tily, IPD’s executive director and head of UK and Ireland, said there are "a number of reasons to be more confident about the market" after the property sector got "back into full swing after the summer".

But he also suggested the subdued rates of occupier demand and rental growth mean that “investors looking to property allocations to provide long-term income streams and stability still have to work on an asset-by-asset basis, with opportunities for active management and future supply and demand carefully examined”.