2025 was a defining year for London's prime property market, as seismic policy shifts, global political turbulence, and economic headwinds fostered a mood of caution across the industry. However, the long-term appeal of London as a safe haven was unmistakable, as the capital enjoyed sustained domestic activity and an influx of global wealth. The final stretch of the year was particularly buoyant, with the welcome relief of the highly anticipated Autumn Budget clearing the path for activity in 2026.
Market data has revealed that London's super-prime rental market has continued to outperform, with activity well ahead of last year's levels. Deals at £5,000 per week and above are up 8%, with new prospective tenants registering at that level rising 5%. This reveals a decisive shift among London's wealthiest residents: for high-net-worth home seekers, renting is no longer a stopgap but a strategy. We asked our in-house lettings expert Olivia McSweeney about this pivotal moment in the market. Read on to learn more about the forces reshaping London's super-prime lettings landscape and what lies ahead.
If you had to summarise the current moment in London’s luxury lettings market in one sentence, what would it be?
Tenants in prime central London are more discerning than ever, and renting is increasingly a long-term first choice rather than simply a transitional step.
Market data suggests that £5,000-per-week tenancies have risen year-on-year despite softer activity across the wider rental market. Do you agree? If yes, what is driving this resilience at the super-prime level in London?
I do agree. Over the past decade there have been a few pivotal moments where we saw a shift towards renting at the super-prime level, with 2017/18 being a notable one. But what we're seeing now is far more pronounced, as both the demographic and the expectations have changed.
These are people who, not long ago, would have bought without hesitation, but successive legislative changes, including non-dom status, inheritance tax and stamp duty, have fundamentally altered the calculation. They still want beautiful, high-value homes on a long-term basis; they have simply concluded that renting is the smarter option.
How would you describe the current mood of London’s prime and super-prime rental market compared with this time last year?
January and February are quieter months in the prime lettings calendar, so a direct year-on-year comparison is difficult at this stage. What we can say is that 2026 is already showing real promise, with several US relocations either underway or imminent, all at £5,000 per week or above. The sales market is also gaining momentum, and where properties are being offered on both a sale and lettings basis, we are seeing interest on both fronts simultaneously.
Much of London's super-prime rental stock comes from properties that have been sitting on the sales market and let in the meantime. With the sales market now picking up, that supply is far from guaranteed. Should rental demand remain strong against a tightening supply, the result could be another upward move on pricing.
What is driving demand in London's prime and super-prime rental market right now?
International relocations, tax changes, economic uncertainty, and evolving lifestyle preferences are all influencing people to rent. What is striking, however, is that we are seeing longer leases than ever. People are renting but want long-term security, so two- to three-year fixed terms are becoming the standard. The battle is getting landlords to agree, as many would prefer to keep their options open rather than commit to the longer terms their tenants are actively seeking.
Supply in London's prime and super-prime rental market is understood to be below the five-year average. Are you seeing this on the ground?
Yes, supply is limited, and the best stock rarely reaches the open market. When it does, it moves almost instantly. We recently agreed terms on a property asking £5,000 per week within hours of it launching online. The tenants were relocating from the US; it was viewed virtually, and the deal was done the same day it went live.
How are landlords responding to recent tax changes, regulations, and the upcoming Renters' Rights Act?
The Renters' Rights Act is unlikely to have a significant impact on the market we operate in, as the majority of our properties sit above the AST threshold of £100,000 per annum. What is more pressing is the growing tax burden on landlords. Between recent changes requiring more frequent tax returns and a raft of wider legislative shifts, the cost and complexity of being a landlord is only rising.
Which prime and super-prime London neighbourhoods have been the most active recently?
Marylebone, Notting Hill, Chelsea and Belgravia are among the most active neighbourhoods right now. Their distinct village-like feel paired with proximity to leading schools is the main draw.
Can you describe the tenant demographic in London's super-prime rental market?
There is no single profile, and that is what defines this market. We have people from all age groups and nationalities. In terms of professional background, the range is equally broad from finance, tech, and real estate to inherited and self-made wealth. Tenants I have personally placed recently include Chinese, Nigerian, American, Australian and Indian nationals, which speaks to just how international demand at this level has become.
What is flying off the shelves in your portfolio right now?
The £5,000 to £10,000 per week bracket is particularly active, with newly renovated and turnkey properties being snapped up quickly. Presentation is key, and the quality of staging is more important than ever.
What factors will most influence the super-prime lettings market over the next 12 months?
Supply in the rental market and global politics are going to be two influential factors this year. For landlords with properties sitting empty, the key will be presentation, and that may mean investing in upgrades and furnishings to meet the expectations of today's tenants. Those who are putting in the effort to be best in class are already seeing the benefits.
Looking ahead, do you expect super-prime rental demand to remain strong through 2026, or could we see a shift back towards purchasing?
Rental demand will remain strong. If good stock becomes harder to find, it may push some back to the sales market, particularly those with a long-term view on London. But with the world in the state of flux it currently is, London will always be a safe haven for families.
