United Kingdom Sotheby’s International Realty (UKSIR) is seeing an emerging lettings trend of tenants wanting to “try before they buy” – renting a property and negotiating an option to buy at the end of the tenancy.
The ‘rent-to-buy’ structure offers flexibility and appeals to UHNW and HNW buyers who are in the process of building businesses for example, with more entrepreneurs in today’s market than ever, or restructuring overseas.
Factors such as interest rates, potential political changes and global events have also led to this increase.
In 2024, United Kingdom Sotheby’s International Realty achieved an impressive 76% of furnished high-value lettings, with 623 days being the average length tenancy. 73% of tenants were sourced from its global database, indicating how its extensive network and brands are invaluable.
BIDDING WARS
Francesca Fox, Director – Lettings at UKSIR, says: “We’ve seen a strong start to Q1, particularly in the super-prime lettings market. There’s been a noticeable increase in bidding wars among tenants eager to secure off-market rentals or properties that were previously on the sales market and are now available to rent.
“In North London, we’re seeing sellers who have completed sales now opting to rent. This allows them to “try before they buy,” explore new areas, or monitor the sales market.
“Traditionally, our UHNW and HNW tenants were international, relocating for work with clear exit plans. However, with more tenants considering purchases in the near future, we have opportunities to strategically position these tenants as future buyers.”
CREATIVE STRATEGIES
She adds: “As a result of this trend, landlords of super-prime houses are now more open to creative strategies, particularly if their properties have been on the sales market for over a year. This marks a contrast to the past two years, where they were previously hesitant to commit to long-term leases.
“Clients with unique trophy homes or long-term holdings, especially those with strong ties to London through generational wealth or business interests, are increasingly open to renting. We anticipate more super-prime houses and apartments becoming available in prime Northwest London in the coming months.”
UKSIR leverages its expertise to predict the target audience of trophy homes, and when its agents find the right match, they advise clients to be flexible. This sometimes leans towards a rent-to-purchase arrangement, consequently delivering the end goal for their client.
TRY BEFORE YOU BUY?
Pic: UKSIR
This wonderful, detached home is perfect for a family thanks to its abundance of space both indoors and out. Located behind secure gates the impressive property unfolds over four floors.
50 Sheldon Avenue in Highgate, London, has eight bedrooms and nine bathrooms and is available to rent for £25,000 per week or available to purchase for £13 million.
Pic: UKSIR
Spanning five floors, this elegantly appointed terraced house would suit a family looking for a luxury property that pairs stunning views with high quality design.
Chester Place, Regent’s Park, London has four bedrooms and three bathrooms set over 2,320 SQ.FT and is available to rent for £3,750 per week and available to purchase for £4.75 million.
Pic: UKSIR
This incredibly rare home, originally designed in 1811 by world renowned architect John Nash whose resumé includes Buckingham Palace, has been meticulously restored and boasts stunning views over Regent’s Park including the boating lake.
Hanover Terrace, Regent’s Park, London, has six bedrooms, six bathrooms set over 6,730 SQ.FT and is available to rent for £15,000 per week and available to purchase for £18,950,000.
