Demand for housing in London will outstrip supply by 48% over the coming decade.

According to Knight Frank's report, London Calling - London Residential Development Report 2013, household growth in London is expected to be much greater than previously anticipated.

New projections from DCLG show a near 40% rise in the number of new households expected to be created in London between 2011 and 2021, a total of 525,790. Previous forecasts suggested a 379,000 increase over the same period.

There will be demand for an extra 52,579 homes each year - and some 37,492 of this will be for the private sector.

However, the supply pipeline suggests that the delivery of new homes will fall far short of this, with just an estimated 277,240 expected to be delivered over the next 10 years. Around 177,340 of these will be in the private sector.

This shortfall is despite a 63% uplift in 2012 on last year's figure in the annual number of houses and flats granted planning consent in London.

The total value of London's new-build pipeline for delivery between 2013 and the end of 2022 stands currently at £80bn.

Gráinne Gilmore, Knight Frank's head of UK residential research, said: "The overall trend for development in London shows that demand for housing in the capital will continue to outstrip supply by quite some margin. There is widespread recognition of the housing shortage in the capital, with the mayor pushing hard to encourage higher levels of development.

"While it is impossible for us to second-guess developers about when they will bring schemes forward, our judgments on schemes within the planning pipeline show that overall delivery will not match demand.

"However, we are not discounting 'oversupply' in some local areas - with delivery outstripping local demand as measured by our data. However, the fluidity with which people can and do move across London suggests that the headline figures for supply and demand are a better indication of the wider trend in London."