The high-end rental market fuelled by London’s millionaire exodus – here is what you get for £200k a month

There are greater than 2,000 properties in London at present available on the market charging greater than £10,000 a month for lease. 

Rich homeowners have more and more opted to lease out their properties as an alternative of promoting them, notably these leaving the nation earlier than the scrapping of the non-dom tax scheme, property consultants at Garrison Asset Administration discovered.

Excessive internet value people residing within the UK with earnings coming from abroad have been compelled to pay tax on their worldwide belongings underneath the adjustments.

An estimated 10,800 millionaires left Britain for good in 2024.

We discovered some landlords who have been charging as a lot as £216,667 per calendar month on Rightmove.

That particular condominium was in Knightsbridge. It has 5 bedrooms, 5 loos, a wine cellar and views over Hyde Park.

Tenants even have unique on-site entry to leisure and spa amenities, a personal cinema, a digital expertise room, a squash courtroom and a 21-metre-long pool.

It additionally comes absolutely furnished – however you will want a £300,000 deposit to be thought-about.

You’ll be able to take a look inside right here….

For £108,333 a month, you could possibly dwell in a seven-bed home overlooking Regent’s Park within the sought-after Hanover Terrace.

The 6,103 sq ft property was designed by famend architect John Nash and has three kitchens and 7 loos.

It additionally comes with a Nordic sauna, health club, steam room and personal backyard, and there’s no deposit required.

In Brompton Sq., Knightsbridge, you could possibly lease a six-bedroom and six-bath townhouse for £80,167 a month.

You may want a £110,000 deposit to be thought-about by the owner.

It comes with a examine, swimming pool, media room, two non-public terraces, a health club, a sauna and a storage.

For those who wished a barely smaller property, this four-bedroom terraced home in Lancaster Street, in Notting Hill, is offered for £60,667 a month.

It has three loos, a backyard, an outside kitchen, a number of balconies and a roof terrace.

The owner desires a £70,000 deposit and a observe on the itemizing about furnishings merely says “ask agent”.

On the decrease finish of the ultra-expensive rental market is that this house for £17,983 a month.

The three-bedroom penthouse is in Blackheath, London and is 1,181 sq ft.

It has three loos, a view over Hyde Park and town’s skyline and is described as being kitted out with “innovative expertise to go well with the calls for of recent luxurious residing”.

Who’re the folks renting these properties?

With such excessive value tags, it is truthful to say there’s a fairly small pool of potential tenants for all of those properties.

Georgina Bartlett, the Central London government at property agent membership organisation Propertymark, mentioned there’s a “actual combination” of individuals seeking to transfer into these properties.

She mentioned some are senior company executives seeking to relocate to London, and others who would possibly keep within the metropolis for between 90 and 120 days a 12 months.

“Swiftly, it is smart for them to have the ability to hold an condominium reasonably than proceed to remain in a lodge. Individuals get a bit fatigued with the lodge life-style and like to have a little bit of privateness,” she mentioned.

“There are some tenants that would like to lease to check out London earlier than they’re seeking to buy.”

If folks have that sort of cash, why do not they purchase?

Bartlett mentioned a number of the time, folks renting these properties aren’t planning to remain within the metropolis perpetually, so despite the fact that they might afford to purchase, renting means they do not have to fret about paying stamp obligation every time they transfer.

“While you have a look at the entry, holding and exit prices of buying an equal property, even if you simply take stamp obligation as a value, it begins to make extra sense really to lease even at these excessive ranges versus committing to the tax outlay of a purchase order,” she mentioned.

Another excuse is the operating prices of those costly properties.

She defined that these properties will probably require workers and upkeep, that means maintenance prices are “not insignificant”.

Promoting prices and the time it takes to promote may also put folks off buying a property that they solely intend to dwell in for a brief time period.

“Simply have a look at all these prices and whole them. It will possibly fairly shortly appear like an costly proposition simply to buy one thing when you do not have an intention to carry the property for a long-term interval,” she mentioned.

How lengthy are the tenancies?

As with customary tenancies, Bartlett mentioned brokers will usually agree a fixed-term interval of no less than a 12 months.

However, she mentioned that most of the time, these tenancies find yourself lasting round two years or perhaps a little bit longer.

“For those who look in different nations, really it isn’t the identical emphasis that now we have within the UK on shopping for, so folks do lease with a extra long-term view.”

How lengthy does it take to discover a tenant?

From a landlord’s perspective, it is value ready for the precise tenant to dwell of their vastly precious asset.

Bartlett defined that they usually guarantee that references are correctly scrutinised and monetary necessities might be met.

“It is clearly a finite-sized market and it’s a completely different proposition totally to what we’d think about the extra mainstream non-public rented centre,” she mentioned.

“It is rather more about putting properties with the precise particular person as a lot as something. It will possibly rely totally on what the property is, so it positively takes longer to discover a tenant.”

In some situations, she mentioned it may take a couple of weeks or months, and typically it may take even longer than that.

Who’re the landlords, and why do not they dwell in these properties?

In some instances, the landlords are individuals who have purchased the properties as a long-term funding holding.

Bartlett mentioned that the London property market has a “international status” as an asset class.

“The phrase ‘secure as homes’ nonetheless rings true globally in relation to the London market, so there are nonetheless individuals who need to make investments and see it as a wise place to place their capital and cash on a long-term foundation,” she mentioned.

Different landlords could be renting out their property whereas they wait to see what is going to occur by way of worth over the following few years.

“After which there are some landlords the place the preliminary buy was all the time meant to be for their very own use, however their circumstances have modified after which they’ve moved away,” Bartlett added.

“These properties are all the time higher when somebody resides in them, taking good care of them and taking care of them. So it is an actual combination of individuals which are renting them out.”