The number of build to rent developments in the UK has been increasing fast in recent years but now the trend has spilled over into the luxury homes market as the government’s Stamp Duty increases cut into the London prime market.
Latest figures from the British Property Federation reveal that there are 95,918 build to rent units either completed, under construction or planned across the UK at the moment.
But while the apartments that these developments invariably include are proving popular, the UK’s first build-to-rent mansion has also now been built.
It’s at 50 Cumberland Terrace in central London near Regents Park and is a purpose-built 4,643 sq ft five bedroom property for super-rich tenants.
“The strategy and timing of 50 Cumberland Terrace is extremely adroit and reflects the dramatic transformation of London’s ultra-prime residential market,” says Becky Fatemi, Managing Director of its letting agent, Rokstone (pictured, left).
“Stamp Duty has made real estate investment in London for wealthy families a long-term 10-15 year opportunity, with affluent people looking for short-term housing solutions of less than three years choosing to rent rather than buy.
£10,000 a week
The property, which would fetch £16.5 million if sold on the open market, is a refurbishment of an existing mansion and is now available to let via Rokstone for £10,000 a week.
Originally designed by architect John Nash, it was built as a home to the Prince Regent in 1826 and neighbours have included Wallace Simpson, Duchess of Windsor, fascist agitator Sir Oswald Mosley, as well as actors Tom Cruise and Nicole Kidman.
Until bought three years ago and now refurbished it was an embassy, and the property’s transformation required a year of planning and a two-year renovation.
“This is the first purpose-made refurb-to-rent mansion-townhouse to be launched in Regents Park, and one of the first of its kind in the wider London marketplace,” says Becky Fatemi.
“There are other palatial homes on the market, but they are the result of “accidental landlords” who would ideally like to sell their home, not a strategic rental investment model.”