Prime Central London’s lettings market shrank by 6% in 2025 as landlords exited amid legislative and tax changes – but the capital’s super-prime sector is booming.
That’s according to Beauchamp Estates’ Millionaires Letting in London Survey 2026, which shows the total value of long-let deals above £1,000 per week fell from £379.4m in 2024 to £356.3m in 2025. Transaction numbers dropped from 3,814 to 3,442 – more than 370 fewer deals year-on-year.
The contraction was concentrated in the £1,000–£5,000 per week bracket, while lettings above £5,000 per week saw strong growth. In the £10,000–£20,000 per week super-prime band, deals rose from 19 in 2024 to 30 in 2025, with annual income jumping from £12.7m to almost £20m.
Beauchamp says the uplift has been driven by wealthy American and Middle Eastern tenants, alongside non-doms selling London homes and opting to rent following tax changes and Stamp Duty increases.
CAPITAL RISING
Knightsbridge and Kensington (SW7) recorded 279 deals in 2025, up 12% year-on-year, making it the capital’s busiest prime lettings postcode.
Pic credit: Penguin’s Egg Studio
Belgravia, Chelsea and the Hyde Park-bordering W2/W11 districts also remained among the most active, despite modest annual falls in volumes.
By contrast, Mayfair saw just 112 deals, down 14%, with supply constrained. Fulham was down 35% year-on-year, while St John’s Wood fell 17.5% as landlords withdrew stock.
MIXED FORTUNES
Jeremy Gee, Managing Director of Beauchamp Estates says: “The lettings market across Prime Central London has had mixed fortunes over the last 12 months.
“Concerns over the new Renters’ Rights Act and tax changes has led some professional and private landlords to exit the rental market which is why the size of the Prime rental sector has contracted slightly.
“However, conversely, the Non-Dom abolition and stamp duty has led to a boom in the super-prime lettings market for lets above £5,000 per week.
“We believe that the super-prime lettings sector will continue to flourish and expand over 2026 and 2027, driven by wealthy tenants from the United States, the Gulf states and Turkey.”
BALANCED APPROACH
And he adds: “Some landlords believe that the new Renters’ Rights Act increases risks for landlords including the potential for higher void periods and greater difficulty in repossessing properties and evicting unreasonable tenants.
“The government needs to give these landlords confidence in the sector and take a balanced approach by helping support the supply side of the rental market, not just focusing on demand side issues.”
“Demand at the super-prime end of the lettings market has strengthened considerably.”
Chris Tinkler, Lettings Manager at Beauchamp Estates (Mayfair), adds: “Given the sales environment the Prime London market has seen a notable increase in sellers, including developers, being open to long-term rental solutions and we have seen a rise in off-market lettings viewings whilst the owners have also kept their properties on the sales market.
“On the tenant side, demand at the super-prime end of the lettings market has strengthened considerably, driven by high-net-worth households opting to rent while putting purchase decisions on hold.
“Brand new or newly refurbished properties remain the most sought after luxury lettings, with large family houses in demand in Chelsea, Kensington and Notting Hill.”
BEST DRESSED
He adds: “Although supply remains short tenants searching in Mayfair, Knightsbridge and Belgravia are requesting the very best dressed turn-key lateral apartments in brand new luxury developments offering five-star hotel style amenities.
“During 2026 the London lettings market will continue to be driven by strong demand from international tenants, especially American, Middle Eastern, Turkish and Western European tenants.
“As in 2025 the short-let market this year is likely to benefit from a spike in wealthy tenants from the Middle East coming to London to enjoy the spring and summer, which should keep an upward pressure on short-let values.”
