There’s a common misconception that the wealthy don’t rent property, but in London, that couldn’t be further from the truth, and although the luxury real estate market in the capital continues to boom, it seems that there are also plenty of super-rich individuals and families who are willing to splurge eye-watering amounts on dream leases.
In fact, such is the demand for opulent rental properties in 2023 that we’re paying an extra 1.4 per cent for the privilege or living in some rather impressive abodes. And it’s not just sprawling and expansive mansions that seem to be considered hot property, with the city’s wealthiest tenants increasingly seeking out smaller spaces to rent, too. Data from a number of high-end estate agents reveals that one and two bed properties are also enjoying growth of around 1.6 per cent, and those looking for luxury flats to rent in London through online platforms is at an all time high.
Reasons why many people choose to live in London
London has long been synonymous with luxury and opulence, attracting the world’s most affluent individuals who seek to experience the grandeur and prestige of this iconic city. With their discerning tastes and extravagant lifestyles, few cities can cater to them better when it comes to opulent property rentals, which are handled by some of the most prestigious agents on behalf of their uber-rich owners.
Featuring breath-taking architectural design, exquisite interior aesthetics, and unrivaled amenities that cater to every imaginable luxury, there’s not much you can’t find in London, and your wish is quite literally your luxury real estate rental agent’s command. From underground swimming pools to dance floors that magically transform into lobbies, London’s rental market is associated with immeasurable wealth, with tenants often paying upwards of £40,000 in exchange for living in some of the most sought-after pads in prime locations.
Mayfair comes with easily one of the most coveted postcodes in the capital, and is an affluent neighbourhood that is known for its awe-inspiring Georgian townhouses and grand mansions. Here, spacious living areas, high ceilings and manicured private gardens come as standard, but extravagant extras like heated indoor swimming pools, private gyms and cinema rooms are also common.
And over in Knightsbridge, One Hyde Park is home to some more exclusive addresses, including the iconic One Hyde Park. Filled with opulent penthouses and lavish apartments with stunning views down over Hyde Park, it’s also just a stone’s throw from some of the city’s most prestigious department stores and – Harrods being one of the most notable – and designer boutiques.
For some, the idea of renting when you could buy instead seems preposterous, regardless of how special some of the high-end properties currently available on the rental market happen to be. So who exactly are the people who are willing to part with such eye-watering fees to live in a property over which they ultimately hold no claim?
Well, it seems one thing they have in common is money to burn. Celebrities like Rihanna and Juston Bieber have been known to rent plush pads in the city for months at a time, while wealthy international students from affluent families are also often put up in some of London’s most spectacular properties by their rich parents.
In fact, international families account for one of the biggest proportions of the market, with many drawn to the city because of its excellent job prospects, transport links and schools. Although they have plenty of money to splash out on extravagant living arrangements, the fact that overseas buyers can expect to pay nearly 17 per cent in stamp duty on a second property means that for many, renting seems to make more sense in the short term, and so many are choosing to do just that despite the fact that they could easily afford to purchase a high-priced property in one of London’s most prestigious areas.
But make no mistake; uber wealthy renters may have plenty of cash to splash, but they aren’t stupid, and they demand some impressive features and amenities in exchange for their astronomical rental payments. At the top end of the price range, we’re not just talking the afore-mentioned pools and gyms – we’re talking full-on hammams, private art galleries and walk-in wine cellars, underground champagne bars and classic car garages.
Current overview of this type of rental
The uber-rich renter refuses to compromise on any element of their dream vision, and the high-end property owners who are making a killing from letting their properties out are being forced to renovate, extend and add to their houses and apartments to ensure they continue to attract the right kind of clients.
The opulent world of London’s ultra-wealthy renters is not without its controversies, though. Critics argue that the influx of wealthy renters contributes to rising property prices and exacerbates the housing crisis for ordinary Londoners – and at a time where rental properties in the city are like gold dust, such concerns are not unfounded.
Nevertheless, London remains a magnet for the super rich thanks to its rich history, extensive cultural offerings, and vibrant cosmopolitan vibe – not to mention the great quality of life on offer here – and with a plethora of Michelin-starred restaurants, lavish cocktail bars, opulent theatres, art galleries and museums on their doorsteps, plus some truly jaw-dropping luxury features to enjoy in their pricey rental properties, it’s easy to understand the appeal.
