"This peak demand should come as no surprise" said Ian Potter, head of operations at Arla.

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Central London has seen a 13-fold increase in demand for rental property over the past five years, Arla said.

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Arla Foods, the company formed from the merger of Express Dairies and Arla, has one of the largest milk supply chains in Britain.

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In the South East of England, 57% of the letting agents said that they were seeing demand outstrip supply, according to Arla's quarterly report.

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Letting agents were warning of shortages across the UK, Arla said.

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At the same time, tenants are choosing to rent for "well over a year", Arla said in its survey, which is which is based on responses drawn from 517 letting offices.

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Arla Foods, a Danish-Swedish dairy producer, says a boycott of its goods is under way, despite its placing advertisements in Middle Eastern newspapers distancing itself from the publication of the cartoons.

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