The number of new lettings properties coming to the market in London and the Home Counties in the first quarter of the year was 10% lower than the same period last year, Knight Frank data shows.
The same figure was down by 15% on 2023.
The ratio of new tenants to new lettings properties on the market was 5.0 in the first quarter of this year.
That compares to 4.6 in the previous two years, showing how demand is growing relative to supply.
Tighter supply already appears to be having an impact on rents in prime London postcodes.
Average rents in prime central London (PCL) rose by 0.6% in the three months to March, which was the largest quarterly increase since November 2023. It took the annual change to 0.8%, the biggest increase since October last year.
Meanwhile, average rents rose 0.1% over the last three months in prime outer London (POL), which was the highest increase since November last year.
The annual figure was 1.2%, which was up from 1% in January and February this year.
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