Letting Above £100,000 a Year: What Prime London Landlords Need to Know

Changes to tenancy legislation in England have brought the structure of a tenancy into much sharper focus for landlords, particularly where a property is being let close to £100,000 per annum.

Across Prime Central London lettings, and particularly at the super-prime end of the market, rents can sit comfortably above this figure, but for properties marketed around £2,000 per week, an agreed rent can determine which tenancy framework applies and that can have important practical implications for a landlord.

From the 1st of May 2026, assured shorthold tenancies were replaced by assured periodic tenancies (APTs) under the Renters' Rights Act 2025. An assured periodic tenancy cannot apply where the annual rent exceeds £100,000.

For landlords operating around that threshold, understanding where an agreed tenancy sits has therefore become particularly important.

What Is an Assured Periodic Tenancy?

For qualifying private tenancies in England, assured periodic tenancies are now the standard structure. Unlike the former AST system, they operate on a rolling basis rather than for a fixed term with a predetermined end date.

Landlords can no longer use Section 21 'no-fault' eviction notices within this framework. Where a landlord needs to regain possession, they must instead rely on one of the relevant statutory grounds and follow the required Section 8 process.

The UK Government’s guidance for landlords on assured periodic tenancies provides further information on how the new framework operates.

For many London landlords, that will simply form part of the new lettings landscape. At the upper end of the market, however, there is an important distinction.

The £100,000 Threshold

A tenancy cannot be an assured periodic tenancy where the annual rent is more than £100,000.

That equates to approximately £1,923 per week, making the threshold particularly relevant to properties being marketed at around £2,000 per week.

This is where the agreed rent, rather than simply the original asking rent, matters.

A property may be marketed at £2,000 per week, which on an annual basis sits above the £100,000 threshold. However, if the landlord subsequently accepts an offer below the threshold, the tenancy may fall within the assured periodic tenancy framework, assuming the other qualifying conditions are met.

For that reason, where we are advising a landlord on a property close to the threshold, the tenancy structure should form part of the conversation when considering an offer rather than being addressed only once terms have been agreed.

What About Common Law Tenancies?

Within the prime lettings market, many higher-value tenancies sit comfortably above £100,000 per annum and therefore outside the assured periodic tenancy framework. These are commonly referred to as common law tenancies.

For a landlord letting at £3,000, £5,000 or £10,000 per week, for example, there is unlikely to be the same question over which side of the £100,000 threshold an agreed offer will fall. The distinction becomes more important where the rental value sits close to the boundary.

Common law tenancies also provide greater contractual flexibility because the terms are principally governed by the agreement between landlord and tenant, subject to the wider law. This can make the negotiation of matters such as tenancy length, payment arrangements and break provisions particularly important at the top end of the market.

Why Landlords Should Consider More Than the Initial Rent

An offer on a rental property should never be considered on the initial figure alone. The tenant's financial position, proposed tenancy length, payment terms, break clauses and other requirements all form part of the overall offer.

The introduction of assured periodic tenancies adds another consideration for properties around the £100,000 threshold.

An apparently modest difference between asking and agreed rent could mean that a tenancy falls under a different legal framework. That does not necessarily make one offer better or worse, but the landlord should understand the implications before agreeing terms.

For our team of lettings agents in Mayfair, this is particularly relevant when advising on properties close to the threshold, where the terms of an accepted offer may affect the tenancy structure.

Advice Before Agreeing Terms

For landlords letting high-value property in London, the changes make it increasingly important to understand the proposed tenancy structure at the point an offer is being considered.

Where a property sits comfortably within either framework, the position may be relatively straightforward. Where the rent is close to £100,000 per annum, however, the detail matters.

Our role is to identify those considerations early, explain the practical implications to the landlord and work alongside the appropriate legal advisers where required.

If you are considering letting your property in London, our lettings team can advise on rental value, tenancy structure and the most appropriate approach to bringing your property to the market.

Visit our Let With Us page to find out more.

You can also view our current properties to rent in London here.

This article provides general information only and does not constitute legal advice. Landlords should obtain appropriate legal advice on their individual circumstances.