The lack of homes available to rent continues to limit activity in the Prime London rental market, and while annual growth rates are slightly lower than in recent months, rents are still rising rapidly according to data consultancy LonRes.

It says activity levels in the Prime London rental market are still well below normal levels.  

September is usually one of the busiest months for the rental market, but a lack of stock continues to limit activity.  The number of new lets during September was 38.5 per cent lower than last year while new instructions were 25.8 per cent lower.

While the supply of homes available to rent is limited, tenant demand remains strong.  Rents are still rising rapidly – now running at 20.5 per cent although annual growth has slowed slightly from recent high rates. 

The time it takes properties to let is still near record lows while the percentage of properties with a rental discount was just 12 per cent.  

As a result, and for the first time in LonRes records – which go back to 2005 – the average discount to asking rents turned positive (+0.6 per cent – which of course means tenants paid, on average, 0.6 per cent more than the asking rent when agreeing a new tenancy during September.