Multi-millionaires and billionaires now prefer to rent than buy in London because of soaring levels of stamp duty, “excessive state scrutiny” and fears of a future Labour government, a report claims today.
The annual Ultra-Prime Barometer Wealth Report is compiled by high end agents Beauchamp Estates with analysts Dataloft using data from LONRES and Wealth X.
It shows that in the first half of 2023, wealthy buyers purchased £340 million worth of properties valued above £15 million in London, equating to two billionaire homes sold each month.
But over the same period between 10 to 11 super-prime homes per month have been rented for values over £5,000 per week, with rich tenants spending almost £15 million to rent homes in London’s best addresses over the first six months of 2023.
The most favoured locations to let are Mayfair and Belgravia for apartments and St John’s Wood, Regent’s Park and Hampstead for houses.
The report says the ultra-prime rental market in London is booming and rents surging by 8.8% this year to levels almost 30% above pre-pandemic benchmarks.
Erik Holmgren, lettings manager at Beauchamp Estates said: “The super-prime lettings market in London has boomed in 2023 with ultra high net work individual tenants moving beyond their traditional focus on Mayfair, Belgravia and Kensington to look at letting super-prime homes in locations including Marylebone, St John’s Wood and Hampstead.
“Over the past six months Beauchamp Estates has secured super-prime lettings deals which have generated combined annual rental income of over £5.5 million, with tenants from America, China and the Middle East being particularly prominent in the PCL market over the last six months. In Mayfair we have let apartments to tenants from the USA and Western Europe and our lettings portfolio of houses in Mayfair and Chelsea have found favour with tenants from the Middle East and Asia. Marylebone has become a sought-after luxury lettings destination, with apartments securing tenants from the USA and China. In Hampstead houses and apartments have attracting families and students from China and Western Europe.”
