There has been a surge in London’s luxury lettings market as the rich elect to rent rather than buy homes, claims Beauchamp Estates.

Its latest survey reveals that during the first half of 2025, 1,588 lettings deals of over £1,000 per week were agreed, generating a combined rental income of £82.8 million. In H1 2024, there were just 559 deals, generating an income of £32.6 million.

Key factors

Managing Director, Jeremy Gee (pictured), believes it has been driven by four key factors including an influx of wealthy American, Middle Eastern and Western European tenants into London; UK non-doms selling their London home and renting as they prepare to relocate to places like Dubai and Monaco; Stamp Duty making people choose to rent rather than buy; and a reduction in the supply of rental properties.

He says: “The appeal of Prime Central London as a key destination for both short and long stays is evident – the luxury lettings market has doubled in size during the first half of 2025, compared to the same period in 2024.

London’s luxury property market is hugely influenced by global political and economic shifts.”

“London’s luxury property market is influenced by global political and economic shifts, rather than just domestic economic activity.

“Over the past 12 months, the political decisions of President Donald Trump, Saudi Crown Prince Mohammed Bin Salman, UAE President Mohammed bin Zayed Al Nahyan and Israeli Prime Minister Benjamin Netanyahu have had a significant impact on London’s luxury residential lettings and sales markets, their decisions generating a wave of new international tenants and real estate purchasers in the UK capital.”