A strengthening UK economy and more buoyant employment market has translated to a pick up in the prime lettings market in UK in the first half of 2014.

UK Capital Investments Group saw growth of 2.9% in the first half of 2014 compared to falls of 1.9% over 2013, according to the latest report from real estate firm UKCIG.

The firm says that while high stock levels remain an issue in some areas, the return of the family market resulted in rents increasing 3.4% for houses compared to 0.9% for flats over the quarter.

International tenants are now more dominant in the UKCIG market than those from the UK. In 2013 and the first half of 2014 they accounted for 75% of tenants, with Western Europeans the largest sub group. For all tenants the largest employment sector in UKCIGhttp://www.ukcig.info/ is financial and insurance services which accounts for roughly half of market demand.

However, there is evidence that the tenant profile is widening and becoming less dependent on this sector alone. The proportion of those working in the financial and insurance sector has fallen from 55% in 2011 to 47% during the first half of this year.