Prime Central London’s high-end lettings market has more than doubled in activity during the first half of 2025. Strong demand from overseas tenants, combined with changes to tax policy and a shortage of rental supply, helped drive a 154% rise in deals and a sharp increase in rental income across the capital’s most exclusive neighbourhoods.
- 1,588 luxury rental deals were agreed in H1 2025, up from 559 in H1 2024
- Surge driven by overseas tenants, non-doms renting, stamp duty deterrent, and landlord exits
- Houses averaged £2,679 per week for long-term lets, apartments averaged £1,842
- Americans, Middle Eastern tenants, Israelis and Europeans were the most active tenant groups
- Landlord exits reduced supply, partially offset by accidental landlords and developer rental stock
Original article source: The Intermediary
Even against the backdrop of shifting tax policy and a tightening landlord base, London’s luxury lettings market is showing striking resilience. The doubling of high-end rental activity in just twelve months underscores the city’s enduring role as a safe haven for international wealth.
On one side, traditional landlords leaving the market has reduced supply, which in turn has strengthened rental values at the very top end. On the other hand, the influx of American, Middle Eastern and European tenants is reinforcing London’s global pull – tenants are not only active, they are prepared to pay substantial premiums for prime addresses in Mayfair, Marylebone and Belgravia.
The divergence between houses and apartments is particularly telling. Family-sized homes, often let to long-term international tenants, are commanding marked premiums over flats. That demand profile gives confidence to investors considering larger homes as rental assets, especially in areas with strong overseas appeal.
It is also clear that political and economic decisions well beyond the UK are influencing the capital’s rental flows. Geopolitical shifts in the US, Middle East and Israel are translating into real demand for secure, prestigious London addresses. This reinforces a long-standing truth – London’s luxury property market moves to a global rhythm, not just domestic cycles.
The current landscape offers opportunity. Scarcity of supply combined with resilient international appetite points to stable returns in the months ahead. In a market where wealth is increasingly mobile, London continues to benefit from being a destination of choice.
