In addition, prices for houses in the capital will rise by 18%.
The predictions are being made by real estate consultancy Cluttons who say that fears over the election outcome led to house prices and rents being stifled.
The biggest drop in demand was reflected by international buyers and there was a 'sharp tailing off' in demand for property in the first three months of this year. Now, the firm says, rents for prime central London properties will rise by 4% on average every year for the next five years.
Increasing demand for central London rental properties
Cluttons say this increase will be led by increasing demand and the affordability of properties meaning many workers will continue renting.
In addition, jobs are being created at a strong rate in London which is also boosting demand.
The firm's business development manager, Faisal Durrani, said tenants are increasingly looking to move into areas where rents are lower so they can save money to buy a property.
He added: “The reason for this is the tenant’s desire to buy and the best performing markets in London property over the next year will be Newham, Lewisham and Enfield.”
Fears that Airbnb is pushing up rents
Meanwhile, Camden Council has raised fears that property rental websites, such as Airbnb, are pushing up rents in their areas.
This is making it more difficult for people and families to find a cheap home to rent. This website claims it is a non-commercial and independent enterprise that allows people to find holiday lets.
However, other authorities in cities around the world, including Paris and New York, say that Airbnb is responsible for pushing up rents in the residential market.
In addition, Camden Council says that they are receiving a growing number of complaints about anti-social behaviour and noise about the short-term lets that have been made through the website.
Thousands of families in London need a home
Council leader, Cllr Sarah Hayward, said: “There are thousands of families in London needing a home and we need to strongly resist the growing market for short stay lets of homes. These will reduce options that are available for Londoners needing somewhere affordable to live.”
The council says around a third of people living in Camden have to rely on private rental homes with increasing numbers of landlords housing more social tenants.
The problem with Airbnb is that the Deregulation Act allows Londoners to have lettings of less than 90 days without gaining planning permission or risking a £20,000 fine.
In addition, because of the numbers involved, authorities say it's now becoming impossible to enforce the rules which restrict short term lettings.
