London's Prime Lettings Market Contracts But Capital's Super-Prime Lettings Boom

The Prime Central London lettings market contracted by 6% during 2025 as professional and private landlords exited the rental market due to concerns over the new Renters’ Rights Act (27 Oct 2025) and tax changes; with the super-prime lettings market conversely booming due to the Non-Dom abolition and Stamp Duty rises with this apex market set to flourish in 2026: these are some of the key findings from the newly released edition of the bi-annual Millionaires Letting in London Survey 2026 by ultra-prime estate agent Beauchamp Estates.

The survey found that wealthy Middle Eastern families (in particular from the United Arab Emirates, Saudi Arabia and Turkey) and American families are currently the largest overseas tenant groups at the top end of the Prime Central London lettings market. The American and Gulf dominance has helped their favoured addresses such as Knightsbridge, Kensington, Belgravia, Notting Hill and Chelsea perform strongly over the last 12 months. As a result of the American and Gulf influence 2025 saw a significant upsurge in the popularity of Knightsbridge and Kensington (SW7), with lettings transactions volumes up 12% on 2024.

Beauchamp Estates say that other significant tenants for luxury London homes over the past 12 months have been families and couples from India, China and France. For the families, houses close to good schools are the priority, whilst UHNWI (billionaires and centi-millionaires) and couples tend to prefer apartments in luxury buildings protected by porterage/concierge for security.

The PCL Lettings Market: Overview

The survey, which reviews luxury houses and apartments rented across Prime Central London by wealthy tenants for values of over £1,000 per week (£4,333 per calendar month), found that the PCL lettings market contracted by 6% during 2025 with the total value of long-let rental transactions falling from £379.44 million in 2024 to £356.28 million over 2025, an annual fall in rental deals of over £23 million.

There were 3,814 lettings deals of over £1,000 per week agreed during 2024, compared to 3,442 in 2025, a drop of over 370 transactions – averaging 31 less deals per month across the whole of last year.

Contraction vs Boom

The Millionaires Letting in London Survey reveals that the Prime London lettings market, lets between £1,000 to £5,000 per week, contracted during 2025, as landlords exited the market resulting in less stock and deals being generated. However the super-prime lettings market, rentals of over £5,000 per week, boomed due to several factors: an influx of wealthy American and Middle Eastern tenants into London; a rise in UK non-doms selling their London homes and renting as they relocated to places like Dubai and Stamp Duty making people choose to rent rather than buy.

2025: London’s Biggest Lettings Deals

During 2025 the biggest super-prime lettings deals were for long-lets a £28,000 per week (£112,000 per month) for a large house on Mansfield Street in Marylebone, and the biggest apartment deal, a mega-apartment in the Candy brother’s One Hyde Park development in Knightsbridge, let for £27,000 per week (£108,000 per month).  

For 2025 short-lets the record deals were £25,000 per week (£100,000 per month) for a grand townhouse in Chester Square in Belgravia and £22,500 per week (£90,000 per month) for a palatial lateral residence in Prince’s Gate, South Kensington; both short-lets agreed by billionaire families from the Gulf wanting temporary lavish homes in London for the summer season, happy to spend in excess of £250,000 each on holiday accommodation.

During 2024 the equivalent biggest lettings deals were £27,500 per week (long let) for a lavish mansion on Hamilton Terrace in St John’s Wood and £45,000 per week (short let) for a grand house in Notting Hill – both American families; and £25,000 per week (long let) for an apartment in One Hyde Park and £20,000 per week (short let) for a lateral residence in Prince’s Gate – both families from the Gulf.

Rental Values

Luxury houses across London achieved lettings values during 2025 that averaged £2,499 per week (down -8% on 2024) for long-term lets (house typically 2,246 sqft in size), and £4,974 per week (up 81.5% on 2024) for short-term lets (house typically 2,559 sqft in size).

Apartments during 2025 achieved an average of £1,770 per week (no change on 2024) for long-term lets (typically 2,246 sqft in size), and £2,142 per week (up 21% on 2024) for short-term lets (2,559 sqft in size).

During 2025 the dramatic rise in values (and income) generated by short-term lets is due to the return to London of wealthy Middle Eastern short-let tenants with “deep pockets” during the Spring and Summer months who were mostly absent in 2024.

London’s Top Luxury Lettings Addresses: Winners & Losers

During 2025 there were winners and losers amongst London’s best addresses for the most popular locations for luxury rentals. The survey analysed postcodes across the capital and picked out those where there have been more than 50+ lettings deals for values over £1,000 per week (£4,333 per calendar month) over a 12-month period.

The biggest winners in 2025 were Knightsbridge and Kensington (SW7 postcode), the former popular with Middle Eastern tenants, and the latter liked by American, Middle Eastern and Western European tenants. During 2025 there were 279 lettings deals recorded in the SW7 postcode, up 12% on 2024 (249 deals), the Knightsbridge/Kensington postcode accounting for more lettings deals than any other single postcode in the capital.

Another success story has been Belgravia (SW1X / SW1W postcodes), popular with both tenants and purchasers from the Middle East, a wave of refurbishments and interior design “refreshes” helping to put the address back in favour with the global super-rich after several years of stagnation. In 2025 there were 309 lettings deals in Belgravia, down -12% on 2024 (352), but this drop is reflective of the fact that there has been a significant wave of prime and super-prime sales in Belgravia which has taken houses (also previously for sale) off the rental market.

Other winners in 2025 were the family houses of Notting Hill and Bayswater, popular with American families, and Queensway (W2 / W11 postcodes) with its recently completed super-prime apartment buildings The Whiteley and Park Modern, popular with affluent tenants (and purchasers) from the Gulf and Western Europe. In 2025 there were 374 lettings deals recorded in the W2/W11 postcodes, down slightly (5%) on 2024 (397) but crucially the area bordering the North of Hyde Park representing one of the biggest generators of lettings deals in London.

Another popular location was Chelsea (SW3 postcode), its houses and schools highly favoured by American and French families, with 234 deals over 2025, down just slightly (-5%) on 2024 (247), the third most popular single postcode for lettings deals in the capital.

Mayfair (W1), always popular with both tenants and buyers, has suffered due to lack of available lettings supply. Reflecting the wealth of the district, many multi-millionaire tenants take out 2-3 year rental agreements paying upfront, with many automatically renewing towards the end of the letting. Some Mayfair landlords also removed their properties from the rental market to allow themselves time to review the Renters’ Rights Act.

As a result, the supply of rental stock in Mayfair remains highly constrained, and there were just 112 deals during 2025, down -14% on 2024 (131). Neighbouring Marylebone (W1H) has also suffered from a lack of available rental stock, reflected in just 81 deals during 2025, down 23.5% on 2024 (106).

South of Mayfair, the Westminster-Whitehall district (SW1P) had a good year for ultra-prime sales, but the lettings market has not performed as well, with 53 deals, a 47% drop on 2024 (100). Lack of available rental stock is the cause with some new developments in the district still under construction and not available to welcome tenants.

The luxury rental market has also come under pressure in St John’s Wood (NW8 postcode) where during 2025 private landlords took properties off the market and professional landlords (many Non-Doms) exited the market for locations such as Dubai and Abu Dhabi. As a result, during 2025 there were 174 deals in the NW8 postcode, a drop of -17.5% compared to the previous year (211). Neighbouring Regent’s Park and Primrose Hill (NW1) have also had a sluggish year for the same reasons with just 100 deals, down -12% on 2024 (114).

Other addresses that have struggled (as they have with super-prime sales deals) are Hampstead and Belsize Park (NW3 postcode). Traffic congestion has made travel into the West End to luxury shopping meccas such as Harrods, Selfridges and Bond Street more tedious and so a rising number of tenants have been choosing to live in more central addresses. As a result during 2025 there were just 126 lettings deals in NW3, down -11% on 2024 (142).

Another address that has lost out over the last 12 months has been Fulham (SW6). During 2025 there were just 86 lettings deals, a -35% drop on 2024 (135), the market contracting significantly due to landlords taking their properties off the market, concerned over the Government’s new Renters’ Rights Act.

Another West London address, West Kensington (W14), has also seen its lettings market contract, with just 84 deals, down 15.5% on 2024 (103). However, Beauchamp Estates forecasts that the luxury rental market in West Kensington will expand dramatically over the coming 3-5 years as £11.8 billion (GDV) worth of new mixed-use developments projects bring huge inward investment, new homes, retail and leisure facilities to the district. They include the £10 billion Earl’s Court Regeneration Scheme, the £1.3 billion Olympia London scheme and the £500 million 100 Kensington development.

London Luxury Lettings Market: 2025 Review & 2026 Key Trends

Jeremy Gee, Managing Director of Beauchamp Estates says: “The lettings market across Prime Central London has had mixed fortunes over the last 12 months. Concerns over the new Renters’ Rights Act and tax changes has led some professional and private landlords to exit the rental market which is why the size of the Prime rental sector has contracted slightly. However, conversely, the Non-Dom abolition and Stamp Duty has led to a boom in the super-prime lettings market for lets above £5,000 per week. We believe that the super-prime lettings sector will continue to flourish and expand over 2026 and 2027, driven by wealthy tenants from the United States, the Gulf states and Turkey. The huge appeal of Prime Central London as a key destination for both short and long stays is evident, but the UK government need to assist by keep rental regulation to a minimum. Some landlords believe that the new Renters’ Rights Act increases risks for landlords including the potential for higher void periods and greater difficulty in repossessing properties and evicting unreasonable tenants. The government needs to give these landlords confidence in the sector and take a balanced approach by helping support the supply side of the rental market, not just focusing on demand side issues.”

Chris Tinkler, Lettings Manager at Beauchamp Estates (Mayfair) says: “Given the sales environment the Prime London market has seen a notable increase in sellers, including developers, being open to long-term rental solutions and we have seen a rise in off-market lettings viewings whilst the owners have also kept their properties on the sales market. On the tenant side, demand at the super-prime end of the lettings market has strengthened considerably, driven by high-net-worth households opting to rent while putting purchase decisions on hold. Brand new or newly refurbished properties remain the most sought after luxury lettings, with large family houses in demand in Chelsea, Kensington and Notting Hill. Although supply remains short tenants searching in Mayfair, Knightsbridge and Belgravia are requesting the very best dressed turn-key lateral apartments in brand new luxury developments offering five-star hotel style amenities. During 2026 the London lettings market will continue to be driven by strong demand from international tenants, especially American, Middle Eastern, Turkish and Western European tenants. As in 2025 the short-let market this year is likely to benefit from a spike in wealthy tenants from the Middle East coming to London to enjoy the spring and summer, which should keep an upward pressure on short-let values.”

For further lettings information and listings contact Beauchamp Estates on Tel: + 44 (0)20 7722 9793, or visit our website.