St John’s Wood and Regent’s Park join super-prime lettings market
- Credit: Archant
London’s £1 million plus lettings market is booming, with St John’s Wood and Regent’s Park joining traditional super-prime areas such as Mayfair and South Kensington this year.
Stamp duty changes, pre-election uncertainty and an undersupply of luxury properties are driving ultra-high net-worth individuals into the rental market, rather than buying, according to a report by luxury residential specialist Beauchamp Estates and market intelligence group Dataloft.
This year has seen minimum rents in the ultra-prime lettings sector (defined as the top 5 percent of lettings properties) reach £108,000 per annum (£9,000 per month), their highest ever level.
The number of properties let for more than £10,000 per week has increased 12.8 pc this year compared to the same period in 2013, while the average ultra-prime rent was 6.5 pc higher in Q3 2014 than the same period last year.
Rosy Khalastchy, who deals with north west London properties at Beauchamp Estates said: “There is a strong ultra prime lettings market across inner and north west London. Beauchamp Estates has handled a range of luxury lettings properties in this marketplace.
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“Typically, the luxury lettings properties that we deal with in Regent’s Park and St John’s Wood are generally between £15,000 and £25,000 per week and provide residents with all the amenities of a five star hotel, but with the added luxury of a private home.”
The average weekly ultra-prime rent is £3,500 per week, or £182,000 per annum. The average price of a home in England and Wales is £177,299.
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Gary Hersham, managing director of Beauchamp Estates said: “Concerns over a change of government, the mansion tax debate and now Stamp Duty changes have led high-net-worth-individuals to decide to rent for the next 12 months and delay purchase plans. This might cost a client up to £1 million, but this is less than a £25 to £100 million outlay for an ultra-prime property.”
According to Beauchamp Estates, tenants of ultra-prime rental houses tend to be wealthy continental Africans, Middle Eastern and Russian/CIS with oil, gas, investment or commodity trading money to burn. Those who opt for luxury apartments and penthouses are more likely to be UK, North American, European and Asians on secondment to London working in banking, financial services or advertising.
The top ultra-prime rental property requirements include private cinemas, private gyms, swimming pools, lifts, parking and landscaped gardens.