According to a London property management company, the profile of renters in prime London is varying hugely. 

Glenfield Property Management says that more families from the US are relocating here for both work and lifestyle reasons, with a notable increase in families seeking larger homes for better value, primarily influenced by school admissions. They also have proactive newcomers: individuals starting new jobs in the upcoming year that are actively pursuing housing options. 

Yasmin Ulhaq of Glenfield Property Management explains: “We have had the odd applicant who exhibits uncertainty initially, requiring a more tailored approach to identify their ideal property, including discussing deal breakers and secondary preferences. Renting has evolved into a preferred lifestyle choice among affluent individuals seeking increased flexibility and liberation from bureaucratic constraints. 

“Undoubtedly, there is an escalating demand for rental properties in highly sought-after London neighbourhoods, particularly in the super-prime regions of Kensington and Chelsea. But inventory is low, making it highly competitive.”

Beauchamp Estates’ latest Ultra-Prime Barometer Wealth Report suggests that London remains one of the most popular destinations in the world for billionaires to own or rent a home, with quality  restaurants, cultural facilities, sporting venues, top education, the safe haven the capital offers and personal security being key reasons. 

However, the agency claims billionaires have also become wary of buying homes in London because they are worried that a change of government from Conservative to Labour in 2024 could result in rises in stamp duty, other wealth taxes, and further regulation.

Ulhaq continues: “In the summer, I found myself entangled in a clandestine affair of luxury real estate, cloaked in secrecy by the shadows of a hush-hush NDA. Picture this: a husband on the hunt for a discreet abode, not for business or leisure, but for his mistress and their little secret. Navigating this covert escapade proved to be quite an exciting challenge, especially when trying to catch him between the carefully timed calls of his other half. A real estate tale spun in the web of passion, secrecy, and the irresistible allure of the London property scene…”

She says that for a typical rental of £5,000 per week, prospective residents typically secure their dream property with a one-week holding deposit. Additionally, they allocate a total of six weeks for the deposit, covering check-in/out reports, end-of-tenancy cleaning, and general maintenance expenses, including regular gardening upkeep. 

Beyond that, residents take care of utilities such as Wi-Fi, gas/electricity, council tax, water, alarm systems, and the maintenance of any audio-visual equipment throughout the house. It’s not just about securing a home; it’s about curating an unparalleled lifestyle. 

And Ulhaq adds: “One final cost: SDLT. Most people only associate stamp duty with buying and selling houses, but if the cumulative rent that a tenant pays during the total length of their tenancy exceeds a threshold figure (currently £125K), they must also pay stamp duty at the rate of one per cent on any amount above that threshold. Paying stamp duty on rental properties is not as bad as it sounds.”