LETTINGS

SALES

LETTINGS

There’s been plenty of activity in the rental market in 2023 so far, with a steady stream of supply matched by tenants looking to put down roots in central London. So what are the hot spot neighbourhoods for super-prime rentals?

As well as this, tenants are more transient than ever. Whether it’s a short or long lease, around 85% of demand is for fully furnished, turnkey properties. Home owners who have decided to renovate or make home improvements often look to rent a temporary property nearby. The question so often has become ‘can I still walk my children to school and pop to the building project easily from here?’.

There’s undoubtedly a preference for keeping available properties to rent off market, especially when newly launched. Around 70% of our super prime lettings stock – homes achieving north of £5,000 per week – are kept offline. This is mainly down to landlord and tenant discretion and enhanced security for both sides – as there’s no digital footprint left behind. Some clients believe they will get a more committed tenant by keeping things discreet, while others simply want to test the water.

Something to emerge this year is the more considered and highly selective approach that tenants are taking when it comes to finding their next rental property. During the pandemic there was more of a scattergun approach to viewing and finding a property, but this has since subsided and now clients are viewing fewer properties that precisely fit their brief. As great as it is to see multiple options, applicants are realising that trusting your agent on what is out there is the best thing in navigating these ‘under the radar’ market conditions.

London continues to attract buyers looking for best-in-class property from all around the globe. While the very top end of the market typically relies less on mortgage debt than the rest of the market, our most recent sales have been even more skewed towards cash buyers than normal.

SALES

Why London? Frequently it is education, education, education. Those who have children in full-time schooling are looking for larger homes, with their property search often starting with the word ‘detached’. But it’s hard to find this in areas of prime central London. On the other end of the spectrum, there are the families looking for pieds-a-terre. Most are searching for a turnkey apartment in a building with concierge and amenities. New developments such as The Old War Office, The Whiteley and Chelsea Barracks, to name a few, appeal here.

Another factor driving buyers to super-prime London property is relocation. We’re seeing new international buyers looking to put roots down in prime central London. Whether they’re coming from the wealth corridors of America, the Middle East or Far East, it’s the culture, time zone, business environment and language that tends to draws them here. Those coming from the US appreciate the similarities in culture, and we’re seeing more American buyers looking to permanently relocate to London for this reason. Those from the East are drawn by the cosmopolitan environment and that London is a truly global city.

My advice to buyers looking at the upper-end of the market is to be decisive. A ‘watch and wait’ strategy won’t work as properties of the best calibre don’t come to the market often and supply of quality (and especially large) properties in incredibly constrained and diminishing. Central London has a plethora of property types and neighbourhoods that may also tick the boxes of your wish list if you are open minded to explore them. If you’re selling, be realistic with your pricing strategy – it can take a long time to sell a house at the top of the price brackets so be patient. So a degree of pragmatism and patience is required.