The Prime Central London lettings market showed strong performance in 2024, driven predominantly by affluent American, European, and Chinese tenants, according to Beauchamp Estates’ annual Prime Central London Lettings Survey 2024.
The research found that the super-luxury and short-term rental sectors were particularly prominent.
Wealthy Americans were the largest overseas tenant group, favouring areas like Notting Hill, St John’s Wood, Chelsea, and Mayfair.
As a result, SW3 (Chelsea) saw lettings transaction volumes rise by 21% compared to 2023.
Total long-let rental transactions increased from £362.25m in 2023 to £379.45m in 2024, reflecting a year-on-year rise of 4.7%.
The survey reported 3,815 rental agreements in 2024, up from 3,652 the previous year, focusing on properties ranging from £850 to £45,000 per week.
W2 (Bayswater and parts of Notting Hill) led the way with 287 transactions, while SW7 (Knightsbridge) and SW3 (Chelsea) followed, indicating continued interest in prestigious locations.
Further analysis showed a shift in property preference, with houses becoming more desirable.
The average lettings value for short lets rose by 34% from £2,045 in 2023 to £2,739 in 2024.
The largest short let deal recorded in 2024 was £45,000 per week for a luxury five-bedroom house in Notting Hill.
Jeremy Gee, managing director of Beauchamp Estates, said: “Beauchamp Estates’ Prime Central London Lettings Survey 2024 demonstrates a remarkable resilience in rental hot spots across the UK capital, with continued demand across both luxury and long- and short-term rental segments.
“Rental values remained strong in key hotspots, and there was an increase in overall transaction volumes, indicating stability and continued demand in the market.
Gee said: “Prime locations such as Knightsbridge, Chelsea, Mayfair and Bayswater remain at the forefront of activity, with high-end properties continuing to attract affluent tenants.
“The ongoing appeal of Prime Central London as a key destination for both short and long stays is evident, with the number of year on year transactions increasing slightly.
“A burgeoning trend may be that people may choose to rent, and ‘try before they buy’, before committing to in the longer term.”
Ziad Hijazi, lettings manager at Beauchamp Estates, said: “The English capital’s most prestigious postcodes retained their appeal to renters throughout 2024, and Beauchamp Estates Prime Central London Lettings Survey confirms the growing demand for luxury homes in key hot spots, with a year-on-year increase in transactions seen especially in SW3, NW8 and NW1.
Hijazi added: “It is clear that the best in class properties are achieving the best rents, and landlords who are doing works to their properties are able to confidently ask for higher rents than similar properties in their immediate areas.
“American tenants have been highly active in the London lettings market and looking ahead, Beauchamp Estates expect an increasing number of American renters, especially those who didn’t welcome a Trump presidency, to be heading this way.”
