Latest data from The Association of Residential Letting Agents (ARLA), provides a highly positive portrait of the UK's rental market, as new landlords entering the market outstripped those leaving it by three to one.

But it is the south of the country that really stands out as the region where the acceleration of both rents and capital growth lies, according to the data.

The balance of supply and demand is most out of kilter in London and the southeast, where rental demand exceeds supply.

By contrast, the rest of the country is close to supply-demand equilibrium.

As ARLA's Q2 2006 survey says: 'The asset value of rental property in London and the South East has continued to rise in contrast to falls reported in parts of the rest of the country.'