--- title: Supply Shortage and High Demand in the Prime London Rental Market description: Rents are still rising rapidly in prime areas of London thanks to a housing shortage and high demand from tenants. image: https://blog.magnateassets.com/hubfs/New%20Project%20(13).png --- [![logo](https://blog.magnateassets.com/hs-fs/hubfs/logo.png?width=216&height=50&name=logo.png "logo")](https://magnateassets.com/) × - [Properties](https://www.magnateassets.com/en/searchresult) - [Off-Plan](https://www.magnateassets.com/en/searchresult?proType=Off-Plan) - [Completed](https://www.magnateassets.com/en/searchresult?proType=Completed) - [High Yield Investing](https://www.magnateassets.com/en/high-yield-investing) - [HMO (Houses in Multiple Occupation)](https://www.magnateassets.com/en/property-hmo) - [Student Accommodations](https://www.magnateassets.com/en/property-student-accommodations) - [Property Sourcing](https://www.magnateassets.com/en/property-sourcing) - [Property Concierge](https://www.magnateassets.com/en/property-concierge) - [Land Options](https://www.magnateassets.com/en/searchresult?proFor=Local&proType=Land%20Options&country=UK) - [Property Bonds (Promissory Notes)](https://www.magnateassets.com/en/property-bonds) - [Buildings](https://www.magnateassets.com/en/searchresult?proType=Buildings) - [Build-to-Rent Projects](https://www.magnateassets.com/en/build-to-rent-projects) - [Equity Investments](https://www.magnateassets.com/en/equity-investments) - [Funding Partnerships](https://www.magnateassets.com/en/funding-partnerships) - [Locations](https://magnateassets.com/en/location) - Resources - [Blog](https://blog.magnateassets.com) - [Podcast/Webinars](https://www.magnateassets.com/en/video-gallery) - [Guides](https://info.magnateassets.com/guides) - Finance, Tax & Legal - [Mortgage Calculator](https://magnateassets.com/en/mortgage-calculator) - [Mortgages & Finance](https://www.magnateassets.com/en/mortgages-and-finance) - [Property Transfer & Legal](https://www.magnateassets.com/en/property-transfer-and-legal) - [Tax Planning and Set up](https://www.magnateassets.com/en/tax-planning-and-set-up) - [UK Immigration Information](https://www.magnateassets.com/en/uk-immigration-information) - [Managing Your Properties](https://www.magnateassets.com/en/managing-your-properties) - [Furniture Packs](https://www.magnateassets.com/en/furniture-packs) - About Us - [Meet the Team](https://www.magnateassets.com/en/meet-the-team) - [Contact Us](https://magnateassets.com/en/contact-us) - [UK Property Investment](https://www.magnateassets.com/en/for-uk-property-investment) - [Developer Partnerships](https://www.magnateassets.com/en/developer-partnerships) # Supply Shortage and High Demand in the Prime London Rental Market Published by Keith Egan on Feb 3, 2023 Rents are still rising rapidly in the prime areas of London due to a shortage of homes available to rent against a background of high demand from tenants.  London property data consultancy LonRes, whose managing director Anthony Payne comments: “The shortage of homes to rent is limiting activity in the market with new lets well below normal levels.” Payne says the prime London rental market in 2022 was characterised by a lack of homes available to rent and rapidly rising rents.   There is still a severe lack of property to rent amid a rebound in demand as people returned to live, work, and study in London, post-pandemic. This lack of available homes has meant a fall in the number of new leases in the market. LonRes says there could be several reasons for this decline – some suggesting a short-term effect and others more long-term.  These include a temporary rebound from the pandemic, landlords selling their properties, and a shift to longer-term tenancies where tenants remain for longer in the property to avoid higher rentals in the market. This lack of homes on the market to rent and high tenant demand has pushed prime London rents to new record highs in 2022. Rents ended the year 13.7 per cent higher than in 2021 and 19.8 per cent higher than the pre-pandemic average. Payne concludes: “A shortage of property, but no shortage of tenants continues to put pressure on rents taking them to new highs.  At the end of 2022 prime London rents stood 13.7 per cent higher than they had been a year earlier.” Topics: [UK Property](https://blog.magnateassets.com/tag/uk-property), [Real Estate Market](https://blog.magnateassets.com/tag/real-estate-market), [Market Trends](https://blog.magnateassets.com/tag/market-trends), [Rents](https://blog.magnateassets.com/tag/rents) ![Keith Egan](https://blog.magnateassets.com/hubfs/image.png) Written by [Connect on LinkedIn ↗](https://www.linkedin.com/in/keith-egan-a4585613a/) [Keith Egan](https://blog.magnateassets.com/author/keith-egan) Keith Egan has spent 30+ years in senior real estate roles across the UK, Dubai and the MENA region. As Director and Co-Founder of Magnate Group, he leads Magnate Assets focused on UK residential investment, lead generation and digital marketing and the Magnate Investments Division, Magnate's development finance and structured investment arm. Keith specialises in connecting landowners, developers and investors with regulated, technology-driven funding structures and fractional ownership solutions, bridging institutional-grade UK real estate with a wider pool of domestic and international capital. - #### Share: - [![](https://f.hubspotusercontent10.net/hubfs/445465/icon/facebook.svg)](http://www.facebook.com/share.php?u=https://blog.magnateassets.com/supply-shortage-and-high-demand-in-the-prime-london-rental-market) - [![](https://f.hubspotusercontent10.net/hubfs/445465/icon/twitter-sign.svg)](https://twitter.com/share?text=Supply%20Shortage%20and%20High%20Demand%20in%20the%20Prime%20London%20Rental%20Market&url=https://blog.magnateassets.com/supply-shortage-and-high-demand-in-the-prime-london-rental-market&hashtags=weareawesome&via=bluleadz) - [![](https://f.hubspotusercontent10.net/hubfs/445465/icon/linkedin.svg)](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.magnateassets.com/supply-shortage-and-high-demand-in-the-prime-london-rental-market) [Back to Blog](https://blog.magnateassets.com) ### Popular Blogs \[UK Property, Real Estate Market, Market Trends, Rents\] - 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