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Job creation and supply shortages support rents

The recovery in rental value growth has continued to plateau. This, however, does not imply that rents are due to correct as the positive economic outlook and supply shortages should underpin rental values. With yield impact fading, capital value growth is slowing. However, in the near-term, given the dovish tones struck by Mark Carney last week, the risk of a yield-led correction seems limited.

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