Many inner London boroughs are likely to host new purpose-built rental schemes in the coming years, new estimates suggest.

According to a report by Carter Jonas, private rented schemes are being developed in inner areas of the capital due to a shortage of homes in the vicinity.

Greenwich looks set to be one particular hotbed of activity in the near future, along with Southwark, Tower Hamlets and Hackney.

Carter Jonas also expects new developments to spring up in Lambeth, Islington, Kensington & Chelsea and Westminster, among others.

Figures from the organisation indicate that nearly three-quarters of the 14,500 units that have been developed in London during the last five years have been located in inner boroughs.

More than 80 per cent of inner London stock is located in Southwark, Tower Hamlets and Newham.

Nearly 4,800 PRS units are situated in outer boroughs, with over 1,000 units either being built or having been granted planning permission in Croydon alone.

However, Carter Jonas believes that future developments can only come about if major landowners and local planning authorities engage with each other on the issue more effectively. This, it said, could help them facilitate better institutional quality private rented sector activity.

Tim Shaw, head of central London development at the organisation, added that greater institutional interest, support and activity "appears critical to securing greater levels of PRS provision, ideally as a net addition to housing supply".

Robert Flint, housing blogger and solicitor at Winckworth Sherwood LLP, commented: "London is a famously dynamic and young city with an old-fashioned housing market. For a lot of people, London is a temporary stop in their life's journey, to study or work, and they need good quality rented property to fit them.

"To create this new professional rented sector Carter Jonas highlights the importance of institutional investors, the real unsung heroes of the housing crisis.”