That's the impression I get. One club at my airfield had to advertise for a replacement, an instructor I knew had no problem getting a job in another part of the country and a club 'down south' has been offering FI training in exchange for working for them for a time. All points to a shortage developing to me.
It will be interesting to see if the EASA rumour of removing the commercial licence requirement will materialise - and how that affects the FI market. Personally, I never have understood the logic in assuming a PPL holder is safe to qualify and work as an FI if they aren't paid, but have to have a commercial licence if they are.
On the other hand, where are the aspiring airline pilots with £60,000 debts going to go?