The first ten weeks of 2015 saw more than £100 million being paid to landlords in advance to secure luxury rental accommodation in London. The capital city has seen an influx of domestic and overseas renters pay the entire cost of six or 12 month tenancies and deposits to secure rental homes in the most sought after locations. Prior to moving into high end properties tenants will typically pay a landlord in excess of £200,000.
We have recently seen an end to the long period of rapid price growth in the high end housing market and this together with concern that a Labour win at the May general election could introduce mansion tax has resulted in this segment of the property market cooling significantly. There are a high number of potential buyers choosing to rent until after the result in May and many sellers are renting out their city homes and residing in their countryside properties.
We are also bearing witness to an emerging new trend of try before you buy. Many nationalities are renting properties in the capital to assess life in London before they commit to a purchase. Additionally, the corporate market is now in recovery after the financial crash and this has inevitably led to an increase in executives seeking rental accommodation in central London. The Sunday Telegraph recently revealed that a young renter paid a staggering £4 million upfront for five years rent for a Knightsbridge apartment.
As stamp duty and mansion tax worries transform purchasers into tenants the competition for the best homes increases which results in a rise in up front bids. Furthermore, the lettings market in London has become increasingly international and the city is welcoming a new wave of wealthy tenants from several countries that are happy to pay their rents in advance.
If you are a high end landlord or a property investor or developer in London it is a potentially lucrative time. We are the leading name in the London property market and we offer our clients a professional and high calibre service, including property management and guaranteed rent in Harrow and throughout the rest of the capital. We assist all manner of investors and developers and we are renowned throughout the industry for our market and industry knowledge.
We help our clients get the very best from their property investments and we facilitate smooth and successful tenancies across the city. We can manage all tenancies for you and make sure that your investment properties are maintained. We offer full assistance with portfolio development and we are the preferred estate agent for high end owners and investors.