It currently looks likely that both rental and capital value growth will end 2017 broadly in line with our forecasts – which seemed a little optimistic compared to the consensus for most of the year – of 1.8% and 4.9%. However, with employment growth slowing, and interest rates looking set to be hiked further next year, we expect rental and capital growth to slow, to around 1.2% and 0.9% respectively in 2018.
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