Rents in London have increased significantly as demand from tenants continues to heavily outweigh housing supply in the private rented sector.

Chestertons’ latest market review, comparing September 2020 to 2021, shows that that the agency has registered 35% more tenants this year compared to last year and that rents are now 15% higher.

The data also reveals that there were 68% fewer properties available for rent in September 2021 compared to the same month last year whilst the number of tenants moving into their new rental home has risen by 13%.

Richard Davies, head of lettings at Chestertons, said: “This continued surge in demand, especially in prime central London, is heavily impacting the supply of available properties to rent in the capital. As a result, rents have risen sharply and tenants now have a much more limited choice than they did last year.

“On average they are only able to view one or two properties that meet their criteria, which greatly differs from a year ago when they were able to view at least five.”

Areas of London that have seen a particularly strong increase in tenant enquiries in September 2021 compared to 2020 include Camden (+128%), Hyde Park (+45%), Canary Wharf (+38%) and South Kensington (+32%). The number of available properties to rent in these areas was respectively lower with listings in Camden (-74%), Hyde Park (-89%), Canary Wharf (-81%) and South Kensington (-63%) in September 2021 compared to last year.

Davies added: “With demand outstripping supply, landlords are currently in a strong position and those who have been considered selling their property may be persuaded to keep it as a rental investment given that rental yields are now increasing.”