With a growing number of would-be buyers turning to luxury rentals while they wait out political and economic uncertainty, activity in the capital’s super prime market, where tenants are prepared to pay £5,000 or more per week for a home, continues to grow, the latest figures show.
During the first four months of the year, 42 super-prime London rentals found tenants, up 27% year-on-year, according to a report from Knight Frank.
In the year through April, there were 122 super-prime tenancies agreed, which is similar to the level achieved a year earlier.
Demand is particularly strong at the upper echelons of the super-prime market, with no fewer than 30 tenancies agreed at £10,000 or more per week during the first quarter of the year, compared with 20 such deals in the corresponding period 12 months earlier.
Knight Frank believe that the rise in demand for rental properties at the top end of the market, at a time when the high-end sales market is flagging, reflects the fact that many people are deterred by the increased stamp duty, as well as ongoing economic and political certainty.
Tom Smith, Knight Frank’s head of super prime lettings, said: “A wider mood of uncertainty has picked up following the snap general election and the start of Brexit talks. At this price point, there are tenants who are able to rent in the short-term and buy when they sense that a greater degree of stability has returned. One reason the number of tenancies agreed is not higher is due to limited stock availability.”