Investment activity slows over start of 2018

Investment activity slowed over the first quarter of 2018, with both the number and value of transactions falling since the end of 2017. Nevertheless, a small increase in rents and slight fall in yields meant the pace of capital growth picked-up a bit in March. But that was not enough to push up the rate of capital value growth which was unchanged at 5.6%. Given our expectation that yields will stabilise, and that rental value growth will decline, capital value growth is expected to slow over the year.