Prime Central London’s Rental Market Shrank By 6% Last Year

According to the newly released Millionaires Letting in London Survey 2026, Prime Central London’s rental market shrank by 6% last year.

This contraction was driven by landlords exiting the sector in response to tax changes and the Renters’ Rights Act. Conversely, the super-prime market is surging; fuelled by Stamp Duty hikes and the abolition of Non-Dom status, this "apex" segment is expected to see continued growth throughout 2026.

The survey found that wealthy Middle Eastern families (in particular from the United Arab Emirates, Saudi Arabia and Turkey) and American families are currently the largest overseas tenant groups at the top end of the Prime Central London lettings market. The American and Gulf dominance has helped their favoured addresses such as Knightsbridge, Kensington, Belgravia, Notting Hill and Chelsea perform strongly over the last 12 months. As a result of the American and Gulf influence 2025 saw a significant upsurge in the popularity of Knightsbridge and Kensington (SW7), with lettings transactions volumes up 12% on 2024.

Beauchamp Estates say that other significant tenants for luxury London homes over the past 12 months have been families and couples from India, China and France. For the families, houses close to good schools are the priority, whilst UHNWI (billionaires and centi-millionaires) and couples tend to prefer apartments in luxury buildings protected by porterage/concierge for security.

The survey, which reviews luxury houses and apartments rented across Prime Central London by wealthy tenants for values of over £1,000 per week, found that the PCL lettings market contracted by 6% during 2025 with the total value of long-let rental transactions falling from £379.44 million in 2024 to £356.28 million over 2025, an annual fall in rental deals of over £23 million.

Prime London lettings market, lets between £1,000 to £5,000 per week, contracted during 2025, as landlords exited the market resulting in less stock and deals being generated. However the super-prime lettings market, rentals of over £5,000 per week, boomed.

For super-prime London lettings valued at between £10,000 to £20,000 per week there were 19 deals in 2024, generating annual income of £12.7 million, which jumped to 30 deals worth almost £20 million in 2025.

This uplift is due to several factors: an influx of wealthy American and Middle Eastern tenants into London; a rise in UK non-doms selling their London homes and renting as they relocated to places like Dubai and Stamp Duty making people choose to rent rather than buy.

Photo: Beauchamp Estates / Alex Winship Photography

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