Uncertainty triggered by the new Labour Government and taxation concerns that await the 30th October Autumn Budget, combined with Stamp Duty, has made many wealthy people choose to rent super-prime homes in London, rather than purchase, during the first half of 2024 says a new Ultra-Prime London Lettings Survey by Beauchamp Estates.
To produce their latest lettings survey Beauchamp Estates analysed data from LONRES combined with in-house lettings data and market intelligence from Beauchamp Estates London offices, reviewing short and long-term lettings for agreed for over £1,000 per week for houses and apartments across all the Prime Central London postcodes.
Between January to June 2024 a total of 559 homes across Prime Central London were let at values ranging from just over £1,000 per week, up to £25,000 per week for a penthouse in One Hyde Park in Knightsbridge. This equates to 93 lettings deals per month (23 per week) agreed across Prime Central London, an indication of how buoyant and busy the PCL lettings market has been during the first half of the year.
The 2024 figures are slightly down on the first six months of 2023 when a total of 595 homes across Prime Central London were let at values ranging from just over £1,000 per week, up to £20,000 per week for a super luxury apartment Chelsea.
38 Curzon Street: This let is just £7,000 per weekThe PCL lettings deals for the first half of 2024 generated the landlords/property owners a combined rental income of £19.5 million of which £14 million (73%) was generated by apartment lets and £5.5 million (27%) by houses. During the same period in 2023 lettings deals across PCL generated rental income of £23.7 million of which £14.2 million (60%) was generated by apartments and £9.5 million (40%) from houses.
Large trophy houses and luxury penthouses generated the highest lettings income during the first half of both 2024 and 2023. In 2024 the average lettings values achieved for houses were for long lets £2,737 per week for a 2,130 sqft house and for short lets £6,538 per week for a 2,906 sqft house, with the most expensive house let in London being a mansion in Cadogan Place let for £14,000 per week.
The average lettings values achieved for apartments were for long lets £2,146 per week for a 1,384 sqft apartment and for short lets £1,915 per week for a 1,164 sqft apartment with the most expensive apartment let in London being a penthouse in One Hyde Park in Knightsbridge let for £25,000 per week.
TOP LOCATIONS
The top locations in Prime Central London for lettings deals during the first half of 2024 were Chelsea (SW3 postcode addresses) where 100 deals (18% of the PCL total) were agreed and Kensington (W8 postcode addresses) also with 100 deals. This was followed by South Kensington (SW7 addresses) with 95 deals (17% of all PCL deals) and Mayfair (W1 addresses) with 88 deals (16%) such as 38 Curzon Street (main picture and inset)
The other key locations for lettings deals during 2024 were Belgravia, Westminster, Whitehall and Knightsbridge addresses where a total of 149 lettings deals were agreed, representing 27% of all deals agreed across Prime Central London.
TOP FIVE OVERSEAS TENANTS
The top-five most prominent overseas tenants by country/region of origin originate from the United States, the Middle East, Nigeria, India and Western Europe.
Couples and families from the United States tend to let homes in St John’s Wood, Notting Hill, Chelsea, Westminster and Whitehall, Indian tenants tend to favour St John’s Wood, Mayfair and Westminster; tenants from the Middle East like Mayfair, Knightsbridge, Kensington, Regent’s Park and St John’s Wood; tenants from Nigeria favour St John’s Wood and Regent’s Park whilst Western European tenants like Notting Hill, Bayswater and Islington.
Data suggests that it’s American, Indian and Middle East tenants tend to like either luxury serviced apartments offering five-star hotel style amenities or large family houses. Nigerian tenants like large houses set in generous gardens and tenants from Western Europe like spacious apartments in leafy addresses which are close to parks.
MARKET BOOSTED
Gary Hersham, Founding Director of Beauchamp Estates, says: “There has been a rise in wealthy American, Western European and Nigerian tenants coming to London on business secondments.
“The market has also been boosted by the uncertainty generated by the UK General Election which has led some people looking to buy to decide to pause and rent instead until they have certainty about the new Labour Government’s taxation policies, awaiting the 30th October Autumn Budget.”
