Birmingham's prime office yields remain at 4.75%, in line with the prime regional average. In an income-driven environment, prime yields remain attractive against West End (3.25%) and City offices (4%). We expect yields to hold firm throughout 2018 as overseas investors become increasingly open to looking outside London to the regional cities.
In the residential market, we forecast growth will be subdued in 2018, but will pick up in line with improving consumer confidence as the UK's future relationship with the EU becomes clearer. Five-year growth will be in line with the UK average, outperforming London and the South East.
