Mid-Year 2025 Lettings Survey

We have noted a dramatic rise in Prime Central London’s high-end lettings sector, as shifting global dynamics and domestic tax policy changes fuel an influx of affluent international tenants.

The first half of 2025 has seen the market for properties priced over £1,000 per week more than double in activity compared to the same period last year. According to our survey, 1,588 such lettings were agreed in H1 2025, generating a total rental income of £82.8 million. This represents a 154% increase in deal volume and a significant jump from the £32.6 million recorded in H1 2024.

What’s driving the growth?

Four core factors that are reshaping the lettings landscape are:

• International tenant influx – A wave of affluent tenants from the United States, Gulf States, Israel and Western Europe are relocating to London, driving long and short-term rental demand.
• Non-Doms Transitioning to Renters – As many UK-based non-doms prepare to relocate to jurisdictions like Monaco or Dubai, they are selling their homes and opting to rent in the interim.
• Stamp duty deterrent – With property taxes influencing purchase decisions, some would-be buyers are choosing high-value rentals as a strategic alternative.
• Reduced supply – A tightening rental market, caused by long term landlords exiting the sector, has put upward pressure on values.

As a result, prime lettings are achieving record prices. One of the most notable deals this year was a £28,000 per week rental for a substantial house on Mansfield Street in Marylebone. Apartments too, are hitting new highs, including a £15,000 per week let on Wigmore Street.

Long term tenants dominate, but short lets rebound

Of the £82.8 million in total rental income generated in H1 2025, long term agreements accounted for 93%, while short lets contributed 7%. Notably, short let demand has rebounded due to the return of wealthy Middle Eastern tenants during the spring and summer seasons – groups who were largely absent in 2024.

Houses saw a notable premium over flats, reflecting a surge in demand from families. Long term lets for houses averaged £2,679 per week, rising to £6,002 for short-term stays. Flats followed at £1,842 per week for long lets and £2,082 for short lets.

Where are tenants renting?

Geographically, Prime Central London’s most in-demand postcodes have shifted markedly from last year:

• Mayfair & Marylebone (W1): 37% of all activity
• Belgravia & St James’s (SW1): 19%
• Kensington (W8): 13%
• Notting Hill (W2 & W11):  14%
• Acton (W3): 11%
• Knightsbridge (SW7), Chelsea (SW3) and St John’s Wood (NW8) also remain highly sought-after.

In 2024, Belgravia and Chelsea led the market. The shift towards Mayfair and Marylebone reflects changing tenant preferences, particularly among wealthy Americans and Middle Eastern families.

Who is renting?

American tenants have been the single largest demographic. Both political camps are represented, those seeking to distance themselves from the Trump administration and those leveraging his tax cuts to expand their portfolios. Their presence has been concentrated in Mayfair, Kensington, Chelsea and Notting Hill.

Tenants from the Gulf States have continued to favour Mayfair, Belgravia, Knightsbridge and Marylebone, often combining their stays with house-hunting trips. Meanwhile, Israeli renters have gravitated toward St John’s Wood and Marylebone. European families have focused on long term rentals in Chelsea and Kensington.

For younger tenants, luxury apartments with high-spec amenities such as pools, spas and concierge services remain a strong draw. New developments in Mayfair, Marylebone and Knightsbridge are especially popular.

Changing supply dynamics

While traditional landlords have scaled back due to regulatory pressure and changes to the non-dom taxation regime, a new generation of ‘opportunistic landlords’ has emerged. These include owners unwilling to sell at current market values and developers discreetly offering turn-key units for rent rather than discounted prices.

Beauchamp Estates lettings activity

Led by Sara Shirazi (St John’s Wood Lettings Manager), Chris Tinkler (Mayfair Lettings Manager) and Laura Hutton (Senior Lettings Negotiator), we have had an exceptionally strong start to 2025. Our team has secured key lettings in Knightsbridge, Hyde Park and Mayfair for high-net-worth Middle Eastern clients, as well as for families from the US and Europe.

Among the headline deals, a large five-bedroom residence on Princes Gate achieved £22,500 per week on a short-term basis – one of the most significant lettings of the year to date.

Market outlook

“London’s property market remains shaped more by global geopolitical shifts than domestic economic conditions. In just six months, our lettings market has doubled in size—driven by political developments from Washington to Riyadh. Prime Central London continues to offer unmatched lifestyle, security and international appeal.”

– Jeremy Gee, Managing Director

“This year has delivered the strongest start to the lettings market in recent memory. We’re seeing continued demand from American, Middle Eastern and European clients, especially for long term homes. Short let demand has also picked up significantly compared to 2024.”

– Chris Tinkler, Lettings Manager for Mayfair