Walk through parts of central London today and one thing becomes clear: more homes are sitting unused for longer.
In postcodes once defined by constant movement, from South Kensington to Marylebone and Knightsbridge to Notting Hill, the departure of many non-dom residents, combined with a subdued market, has left a growing number of properties in limbo.
Owners are not rushing to sell, yet they are no longer living in the capital full time either.
This is creating London’s latest and largely unseen housing challenge. It is not simply about supply, but about what happens when homes fall out of daily use.
Many internationally mobile homeowners remain invested in London. They are choosing to hold onto their properties rather than sell into uncertain conditions, confident in the city’s long-term resilience.
Companies House data indicated a 40 per cent increase in company directors leaving, 3,790 between October 2024 and July 2025 compared with the previous year, reflecting a broader shift in global mobility that is beginning to reshape parts of the capital.
When several apartments in a building sit empty, the effect is felt beyond the individual owner. Streets lose a little of their daily rhythm.
Cafés, galleries and local boutiques have fewer customers, and neighbourhoods that once felt lively can begin to feel noticeably quieter.
The impact is particularly visible in some of central London’s most established areas, where global ownership has long coexisted with strong local identity.
These places have always balanced international appeal with everyday life. Today, that balance feels more fragile.
A home left unused for months at a time gradually erodes the energy that made these postcodes so desirable in the first place.
Against this backdrop, a new pattern is emerging. Rather than leaving properties dormant, some owners are turning to flexible, professionally operated short-term or mid-term lettings as a way to keep their homes active.
In an uncertain market, this approach allows owners to maintain their asset, generate income and ensure that properties remain part of the life of the city rather than sitting behind closed doors.
When managed responsibly, this type of occupancy can bring renewed momentum to prime London streets at risk of losing their bustle.
Guests often engage with the area in meaningful ways, supporting independent businesses, cultural venues and everyday services that rely on steady footfall.
Buildings feel safer when homes are lived in, and residents frequently welcome the presence of life rather than dark windows.
There is also a practical dimension. Homes are designed to be lived in. Regular occupancy helps prevent maintenance issues that arise when systems sit idle for long periods, from damp and leaks to unnoticed wear that can affect neighbouring properties.
For owners who are frequently abroad, allowing a property to remain active can be as much about stewardship as it is about income.
At the same time, the rental landscape is entering a period of significant change. The upcoming Renters’ Rights Act comes into force from 1 May, leaving property owners with less flexibility in the long-term rental market.
As regulation tightens, the ability for owners to keep optionality to sell in the future or use the property themselves is driving many to seek the flexibility of short-term rentals.
But trust and service standards are more important than ever. Owners of prime homes want reassurance that guests are carefully vetted, properties are professionally maintained and the experience delivered reflects the standards of the homes themselves.
Discreet management, curated stays and hospitality-level service are helping to redefine what responsible short-term letting looks like in central London.
The capital has always adapted to changing patterns of wealth, mobility and ownership. The departure of non-dom residents does not have to result in quieter streets or a loss of character.
Instead, it presents an opportunity to rethink how underused homes can continue contributing to the city’s commercial and social fabric.
Keeping properties active rather than dormant helps sustain local businesses, maintain buildings and bring movement back to areas that risk losing some of their vitality.
In a period of global transition, making better use of the homes that already exist may prove one of the most practical ways to support London’s economy, preserve its character and ensure the capital remains vibrant, lived-in and connected.
Merilee Karr is CEO of UnderTheDoormat Group
