There are an increasing number of prime rental properties on the market, for two reasons. Firstly there is a strong demand from tenants and secondly a tendency for owners to hold on to property in the long term. Super prime London landlords are sometimes owners of property that have relocated but ordinarily properties are owned by long term investors.
The number of high end tenants is also increasing for two reasons. Firstly, the high costs of stamp duty is making purchasing property a long-term decision and secondly for life style reasons. Many people are choosing to rent so that they don't have the responsibilities of owning a property and can live there when they chose, hassle free and flexibly.
At Dexters our Corporate and International team deal with over 10,000 enquiries a year. There are an increasing number of tenants who see London as their secondary residence and look to occupy the property for part of the year, on a long term basis. Super prime renters are looking to be close to Central London, so large family houses in Knightsbridge, Chelsea, the West End and also demand in “leafier” areas such as Hampstead and Wimbledon are popular. Proximity to transport plays a part but schools are the major consideration for families. Those looking for smaller houses and flats want to be in the West End, particularly Mayfair, Marylebone and increasingly Fitzrovia and Covent Garden.
The effects of this massive cash injection from abroad can be seen in the capital’s booming property market. Prices in super prime parts of central London have soared due to the billions of pounds of investment pouring in from Hong Kong, Qatar and Russia. This has transformed the complexion of some of London’s most desirable areas. New buildings are not immune to the trend, either. Recent high-rise developments are said to be attracting sizable interest from overseas investors. The glut of funds flowing into the UK can be viewed as a sign of confidence in its economy and confirmation that it is one of the most attractive countries in the world in which to live.