Demand for rentals costing over £5,000 per week increased in London in the third quarter, providing many opportunities for rental owners.
In London’s super-rental market, the gap between supply and demand is widening. Homes costing more than £5,000 per week are becoming increasingly popular, much to the joy of landlords.
In the third quarter of 2021, 45 super-premium properties were let in the UK capital, compared to 34 in the same period last year. These included one that was let for £40,000 a week, the most expensive in the last quarter.
August alone was one of the strongest months for super-rentals, according to a report published in the UK on Thursday by estate agency Knight Frank.
The appetite for these high-end homes is growing steadily, particularly in Knightsbridge, Kensington and Mayfair. Supply remains limited, however, and the number of high-end rentals is at its lowest level since late 2016, so much so that some prospective tenants have taken up short-term rentals, booked hotels or even signed pre-letting agreements. A recent deal in the Kensington area saw a family home undergoing renovation rented out six months before it was even finished.
“I’m not sure that clients and investors have realised the scale of the opportunity in the short term super-let market in London,” said Tom Smith, head of high end lettings at Knight Frank. “Whatever the budget, searches for this type of rental are often very tricky given the lack of high calibre turnkey options on the market.”
“We had a £20m penthouse on our sales register that sought to capitalise on this market by trying to attract buyers,” he adds as an example. “When it was made available for short term lettings, there were very limited periods when the owners struggled to find a tenant.”
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