Student rents are rising in London because accommodation providers cannot keep pace with the number of students flocking to the capital.
The latest figures pitch 55,000 purpose-built student bed spaces in the capital - with 283,500 students seeking a place to stay, which is a 6% increase on 2010.
About 7,700 more bed spaces are under construction, but the city needs more, according to a student housing report from property consultants Drivers Jonas Deloitte.
London has 21 schemes under construction, compared to 11 last year.
The number of bed spaces currently underway has risen by almost 90% from 4,078 to 7,744 with around a third due for completion in 2011.
The borough of Brent recorded the largest amount of construction with 1,095 bed spaces underway in two schemes.
Chris Baldwin, head of student housing at Drivers Jonas Deloitte, said: “The capital has accommodation for just 20% of the student population. The fact remains we are still a long way from filling the supply gap and this level of undersupply looks unlikely to ease any time soon.
“This is only being exacerbated by the lack of bank finance and tougher planning policy for developers as they struggle to get approval for schemes.”
Student rents in London average £145 per week, 55% above the UK average, while rental growth has outstripped the UK as a whole by 7% over the past 12 months.
The gap between rents for university and direct lets by private student landlords is wide, with direct let rents averaging £216 per week, 79% higher than the university average of £130 per week.
Andrew Gale, planning director at Drivers Jonas Deloitte, said: “We’ve seen planning policy across London evolve in the last 12 months with several authorities harden against student accommodation development.
In Southwark, Islington and Camden policymakers have adopted quite stringent policies to limit new student accommodation.”
