Forecasts for real estate returns in the UK published by the Investment Property Forum (IPF) have painted a mixed picture for the five-year period from 2018 to 2022.The outlook for 2018 has improved over the three months since the last IPF forecast survey was conducted, with average rental and capital value growth rates increasing in virtually all sectors. But market observers are less optimistic about the UK’s prospects from 2019 onwards.

According to the IPF, forecaster sentiment for the current year has picked up, with 23 property consultants, fund and investment management houses predicting an average rental growth rise of 0.8 percent (from 0.4 percent in November). All sector average projections have risen by between 20 basis points and 54 basis points and now lie between 3.5 percent for the industrial sector to –0.8 percent for offices.

Capital growth expectations have also strengthened across the majority of sectors with prospects for the industrial market,