Luxury lettings values hit five-year high despite drop in supply

Luxury lettings values have hit a five-year high, research suggests.

Beauchamp Estates’ latest Millionaires Letting in London Survey found that rental values achieved for luxury houses across prime central London (PCL) so far in 2026 have risen by almost 70%.

Meanwhile, rental values for luxury apartments and penthouses have gone up by more than 15%.

The sharp increases have been attributed to falling supply set against rising demand from wealthy tenants from the Middle East, America and the domestic British market.

The latest survey reviewed luxury houses and apartments rented across PCL between January and June 2026 by wealthy tenants for values of more than £1,000 a week.

The Millionaires Letting in London Survey reveals that average lettings values for luxury London houses and mansions hit £4,177 a week or £217,204 a year, a 67.15% rise on 2025.

It is important that the Government helps the Capital’s rental market to thrive and grow.”

Similarly, the average lettings values for luxury apartments and penthouses has risen to £1,957 a week or £101,764 a year, up 15.12% annually.

The most expensive luxury London homes let during 2026 were a spectacular Mayfair house in Mount Street, let for £33,000 a week, on a long let and a Chelsea townhouse in Cheyne Walk let for £30,000 a week .

Beauchamp Estates says that the rise in lettings values being achieved for both houses and apartments in the best addresses across PCL is a reflection of falling supply set against rising demand putting a strong upward pressure on rental values at both asking and achieved levels.

The number of applicants from the Middle East wanting to rent luxury homes in London has risen by 30% during 2026. The number of applicants from America has risen by 20%, while the number of Chinese applicants has risen by 5%, the agent said.

Supply issues

However, luxury lettings supply has dropped.

In the first half of 2026 there were 1,911 rentals of values in excess of £1,000 a week, down 44.48% annually.

Beauchamp Estates also observed that seven out of 10 London ultra-prime households choose to rent now rather than buy, which it suggests could reflect concerns about potential property tax changes under the Labour Government as well as the Renters’ Rights Act.

Jeremy Gee (pictured), Managing Director of Beauchamp Estates, says: “Rising enquiries from both domestic and overseas applicants underlines how PCL is viewed as an attractive and welcoming destination for both short and long term stays.

“Despite the Renters’ Rights Act requirements, London landlords with turn-key luxury homes are facing less competition, rising rental values and strong demand from discerning tenants. However, the Labour Government need to be mindful that excessive legislation and taxation are harmful to the capital’s rental market, hence the contracting supply pool.

“Households from around the world choose to live and spend their money in London and many prefer to rent rather than buy, so it is important that the Government helps the capital’s rental market to thrive and grow.”