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How will rents perform as the economy slows?

Rental growth typically falls back during economic slowdowns, but we think rents will hold up relatively well over the next couple of years. With the rental vacancy rate close to record lows the market is starting from a position of a strength, and a lack of homes for sale will support rental demand. We therefore expect only a modest slowdown in rental growth from 3.8% y/y today to around 3.3% y/y by end-2020.

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