Rent prices in London are set to continue to rise in the coming years with supply consistently failing to meet demand, a new report has claimed.

The paper, written by Professor Michael Ball of Reading University's Henley Business School and published by Cluttons, claims that the trends in the market indicate the number of households in the capital will rise annually between 34,000 and 38,000 up to 2028.

And if development rates over the past ten years are anything to go by, an optimistic estimate is that housing stock will increase by 21,000 each year over the next decade - a factor that could leave the city's property market facing a serious shortage.

Mr Ball argues that this factor means rent prices in London are set to continue on their current upward trajectory as demand intensifies, with landlords set to benefit from higher yields in the coming years.

"The private rented sector feels the strong pressures of a growing population and workforce, being both the first point of contact and the safety option for many people searching for housing," a Cluttons spokeswoman said.

"New jobs being created in London are increasingly for well paid and highly qualified staff. Those tenants in the higher income groups, including families, will be a growing component of the rental market."

With the capital looking set to offer investors increasing returns in the future as demand outstrips supply, a growing number of existing and first-time landlords could be drawn to the city given Mr Ball's forecast.

But despite the obvious draws, it's vital that anyone who gets involved in the lettings game doesn't leave themselves prone to the risk factors that can threaten profitability - namely tenant arrears and damage to property.

As such, extensive referencing checks and landlord insurance policies are an effective financial safety net that can help investors protect against the threat of unexpected costs.