London’s prime lettings market has more than doubled in size during the first half of 2025 as the super-rich increasingly choose to rent luxury homes rather than buy – with or without a mortgage.

New figures from Beauchamp Estates’ Millionaires Letting in London Survey show 1,588 deals were agreed for properties valued at more than £1,000 per week between January and June this year. That represents a 154% increase on the 559 deals completed over the same period in 2024.

The lettings generated a combined £82.8 million in rental income – more than double last year’s £32.6 million – with £58 million from apartments and £24.8 million from houses.

Notably, 93% of the 2025 income came from long-term agreements, although short-term lets have risen to 7% of the total as Middle Eastern tenants returned to London during the spring and summer.

KEY DRIVERS

Beauchamp Estates identified four key drivers behind the boom: an influx of wealthy American, Middle Eastern and Western European tenants; non-domiciled UK residents selling homes and renting ahead of relocations to destinations such as Dubai and Monaco; the deterrent impact of stamp duty on luxury purchases; and shrinking supply as traditional landlords exit the market.

Competition has pushed weekly rents to record levels. This year’s biggest house letting was £28,000 per week for a Marylebone mansion, while the highest apartment deal was £15,000 per week on Wigmore Street.

Mayfair and Marylebone led activity, accounting for 37% of all luxury deals, followed by Belgravia and St James’s (19%) and Notting Hill (14%).

HIGHEST PREMIUMS

Houses continue to command the highest premiums, with long-term rents averaging £2,679 per week compared to £1,842 for apartments. Demand is being driven in part by wealthy families seeking larger homes, with 40% of international tenants prioritising houses over flats.

The rise of “accidental landlords” has added further stock to the market, as some owner-occupiers rent their homes rather than sell at reduced prices.

Developers are also discreetly offering turnkey properties for rent instead of lowering asking prices.

The findings underline how London’s luxury lettings market is evolving rapidly, with international wealth, tax policy and supply constraints reshaping demand in one of the capital’s most resilient sectors.

HUGE APPEAL

Jeremy Gee, Managing Director of Beauchamp Estates, said: “The huge appeal of Prime Central London as a key destination for both short and long stays is evident, the luxury lettings market has doubled in size during the first half of 2025, compared to the same period in 2024.

“London’s luxury property market is hugely influenced by global political and economic shifts, rather than just domestic economic activity.

“Over the last 12 months the political decisions of President Donald Trump, Saudi Crown Prince Mohammed Bin Salman, UAE President Mohammed bin Zayed Al Nahyan and Israeli Prime Minister Benjamin Netanyahu have had a significant impact on London’s luxury residential lettings and sales markets, their decisions generating a wave of new international tenants and real estate purchasers in the UK capital.”

Main picture: Winnington Road, London. £29,500 per week
Pic credit: Tony Murray and Beauchamp Estates