Luxury house rents across Prime Central London have surged by 67% in a year as the number of high-end rental transactions has fallen sharply and demand from wealthy international tenants increases.
Research from Beauchamp Estates puts the average achieved rent for luxury houses and mansions at £4,177 a week – equivalent to £217,204 a year – during the first half of 2026.
That compares with £2,499 a week in 2025 and £2,715 in 2024, while the average size of homes being rented has remained relatively stable at 2,275 sq ft this year.
Luxury apartments and penthouses have also become more expensive, with average achieved rents rising 15.1% from £1,700 to £1,957 a week – equivalent to £101,764 a year.
SUPPLY CONTRACTS
The increases have coincided with a dramatic reduction in the number of luxury rental transactions.
Beauchamp’s Millionaires Letting in London Survey recorded 1,911 lettings above £1,000 a week during the first half of 2026, down 44.5% from 3,442 during the same period of 2025.
The 2026 deals generated £18.2m of rental income a month, equivalent to £109.2m across the six-month period. In 2025, £177.6m was generated from luxury lettings during the equivalent period.
Beauchamp attributes the contraction to landlords leaving the market amid higher costs, tax changes and regulation.
The Renters’ Rights Act introduced major changes to England’s private rented sector from 1 May, including replacing fixed-term assured tenancies with periodic tenancies and ending Section 21 evictions.
At the same time, Beauchamp says the remaining rental stock is becoming more concentrated towards the most expensive end of the market.
Properties above £3,000 a week accounted for 16% of luxury lettings in 2026, compared with 14% last year, while the proportion above £5,000 increased from 4% to 5.23%.
Properties commanding more than £5,000 a week generated £24.09m during the first half – 22% of total Prime Central London rental revenue, compared with 18% in 2025.
INTERNATIONAL DEMAND
Beauchamp reports a 30% annual increase in applicants from the Middle East, a 20% rise from the US and a 5% increase from China.
Its Mayfair office has meanwhile recorded a 125% year-on-year increase in lettings agreed above £4,000 a week.
The agency says seven in 10 ultra-prime London households in its market are now choosing to rent rather than buy, with flexibility and the costs associated with property ownership contributing to that decision.
Houses and mansions account for almost 30% of its deals this year, up from 22% in 2025.
Picture credit: Beauchamp Estates © Dimitrios Sofianopoulos
Among the highest-value transactions was a Mayfair house in Mount Street at £33,000 a week – £1.71m a year – while an apartment at One Hyde Park achieved £32,500 a week.
A Chelsea townhouse in Cheyne Walk was let for £30,000 a week and a Notting Hill townhouse for £25,000.
PRIME LONDON DIVIDE
The reduction in supply is also producing markedly different results across Prime Central London’s neighbourhoods.
Kensington recorded 326 deals above £1,000 a week, giving it 17% of the market compared with 14% last year. However, the actual number of transactions was 42% lower than the 562 recorded during the first half of 2025.
South Kensington fell from 279 to 146 transactions and East and core Kensington from 196 to 93.
Mayfair has proved more resilient, with 114 transactions compared with 112 last year, while Marylebone increased from 81 to 87.
Belgravia and Knightsbridge together recorded 170 deals, down 32% from 249, while Chelsea fell from 234 to 175.
Notting Hill transactions almost halved from 115 to 59, while Primrose Hill dropped from 100 to 52.
LANDLORD MARKET
Chris Tinkler, Head of Lettings at Beauchamp Estates’ Mayfair office, says: “Falling supply set against rising demand has led to a significant rise in lettings values being achieved for luxury houses and apartments across Prime Central London.
“The capital’s luxury rental market is being driven by wealthy tenants from the Middle East, America and the domestic UK market, who need a London base.”
Jeremy Gee, Managing Director of Beauchamp Estates, adds: “Rising enquiries from both domestic and overseas applicants underlines how Prime Central London is viewed as an attractive and welcoming destination for both short and long term stays.
“Despite the Renters Rights Act requirements, London landlords with turn-key luxury homes are facing less competition, rising rental values and strong demand from discerning tenants.”
