UK economic growth remains subdued as the drawn-out process to leave the EU has left the UK engulfed in a prolonged period of uncertainty, now well beyond the ‘official’ exit date. We expect GDP growth to be weak in 2019, particularly in the first half with business activity and investment continuing to be subdued.
All-property rental growth has slowed further at the start of 2019. The annual rate of growth for all-property declined to 0.2% in the 12 months to March (MSCI Monthly
Brexit will undoubtedly continue to play a large role in short-term investment decisions and we expect activity to remain weak in the first half of 2019 or until there is greater clarity on Brexit. However, investors are unlikely to shy away from a transparent and liquid market, particularly for long-term investments.