Property in Mayfair and Belgravia remains popular, but tenants now seeking short-term rents
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Billionaires and multi-millionaires are now more likely to rent than buy luxury property in London, according to a new report.
Homes in St Johns Wood and Hampstead saw a spike in popularity this year, as the lockdown desire for green space remains popular amongst wealthy tenants.
High stamp duty, financial scrutiny and rising interest rates in the UK were all identified as factors driving the super-rich away from purchasing property outright. The report from luxury estate agent Beauchamp Estates also claims there are concerns that a new Labour government in 2024 could mean a rise in wealth tax and stamp duty.
Rentals of ‘super-prime’ property have grown 8.8% annually in London’s premium postcodes, soaring to almost a third above pre-pandemic levels. This is property worth upwards of £15m or £5,000 per week.
In the first half of 2023, an average of two super-prime properties were sold each month. But in the same period, 10 to 11 were rented each month.
North West is the new hotspot
A key change has been in the popularity of house rentals in North West London over apartments in the traditional hotspots of Mayfair and Knightsbridge.
Post-pandemic trends suggest wealthy tenants are prioritising the green space offered by homes in leafy St Johns Wood and Hampstead.
Over a quarter of super-prime house rentals in the first half of 2023 were in North West London postcodes.
Gary Hersham, Founding Director of Beauchamp Estates, said:
“Both domestic and overseas clients [are] happy to venture further afield…Here, they can try out living in a large family house with sizeable garden – having private outdoor space is a soaring, post-pandemic trend.”
Who are London’s billionaire renters?
Beauchamp Estates say the most active tenants on the current London ultra-prime rental scene are international expats, from Ukraine, Denmark, Turkey, China, the United States and Eastern Europe.
London is a secure location for wealthy Eastern European families concerned by the war in Ukraine, they said.
This summer saw an increase in students and families from China and the Middle East seeking short-term rental contracts for detached properties with swimming pools, often in St John’s Wood and Hampstead.
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HeadlineSuper-rich now prefer renting to buying in prime London postcodes
Short HeadlineBillionaires choose renting over buying in London
StandfirstHigh taxes and the prospect of a Labour government are behind a rise in 'try before you buy' contracts.
Billionaires and multi-millionaires are now more likely to rent than buy luxury property in London, according to a new report.
Homes in St Johns Wood and Hampstead saw a spike in popularity this year, as the lockdown desire for green space remains popular amongst wealthy tenants.
High stamp duty, financial scrutiny and rising interest rates in the UK were all identified as factors driving the super-rich away from purchasing property outright. The report from luxury estate agent Beauchamp Estates also claims there are concerns that a new Labour government in 2024 could mean a rise in wealth tax and stamp duty.
Rentals of ‘super-prime’ property have grown 8.8% annually in London’s premium postcodes, soaring to almost a third above pre-pandemic levels. This is property worth upwards of £15m or £5,000 per week.
In the first half of 2023, an average of two super-prime properties were sold each month. But in the same period, 10 to 11 were rented each month.
North West is the new hotspot
A key change has been in the popularity of house rentals in North West London over apartments in the traditional hotspots of Mayfair and Knightsbridge.
Post-pandemic trends suggest wealthy tenants are prioritising the green space offered by homes in leafy St Johns Wood and Hampstead.
Over a quarter of super-prime house rentals in the first half of 2023 were in North West London postcodes.
Gary Hersham, Founding Director of Beauchamp Estates, said:
“Both domestic and overseas clients [are] happy to venture further afield…Here, they can try out living in a large family house with sizeable garden – having private outdoor space is a soaring, post-pandemic trend.”
Who are London’s billionaire renters?
Beauchamp Estates say the most active tenants on the current London ultra-prime rental scene are international expats, from Ukraine, Denmark, Turkey, China, the United States and Eastern Europe.
London is a secure location for wealthy Eastern European families concerned by the war in Ukraine, they said.
This summer saw an increase in students and families from China and the Middle East seeking short-term rental contracts for detached properties with swimming pools, often in St John’s Wood and Hampstead.
