Cash-rich Ukrainians and Chinese swap Mayfair for St Johns Wood – as wealthy crave more space
Cash-rich tenants from Ukraine, China and the US, have been ditching their traditional stomping grounds of Belgravia and Mayfair in favour of the leafier surroundings of St Johns Wood, as the demand for multi-million-pound homes in North-West London has been heating up.
This year some 63 leases have been signed for properties that cost above £5,000 per week to rent, according to a new report from Beauchamp Estates, which marked a return to pre-pandemic levels of activity the firm said.
Wealthy renters have signed leases for 38 houses and 25 apartments, with a generated combined monthly rent roll of £2.39m.
However, the cost of the overall monthly rent roll for properties that cost above £5,000 per week to rent was £10m down on pre-pandemic levels as rents in premium postcodes have slowed in recent months.
This is in stark contrast to the rest of London’s rental market, which has seen the cost to rent skyrocket over the last year, due to landlords selling their homes to offset rising mortgage rates.
An uptick was also recorded in the number of tenants looking to rent in the likes of St John’s Wood and Hampstead, with 10 leases signed on homes in North West London – up from six pre-pandemic.
Beauchamp said the growing demand for properties in the area, which is home to celebrities such as model Kate Moss and singer Harry Styles, was due to the higher desire for larger gardens and swimming pools during the pandemic.
“During the first half of 2020, as the Covid-19 pandemic struck, the volume of super-prime rental deals dropped to just 38, the majority of them for houses, a trend that has become known as ‘the outdoor boom,’” Beauchamp Estates said.
Francesca Fox, lettings manager at Beauchamp Estates said that amongst the ultra-wealthy looking for homes in London, there is a burgeoning culture of “try before you buy.”
She explained: “At the top end of the rental market are the dream family houses and mansions, which often have several serious tenants competing for them, driving up lettings values.”
“We feel this market will boom for another 12 to 24 months, after which some of these tenants will look again at purchasing – for many, this remains their long-term goal in London.”
Beauchamp Estates said that the most active tenants on the current London ultra-prime rental scene are wealthy international expats, from Ukraine, Denmark, Turkey, China, the United States and Eastern Europe.
Gary Hersham, founding director of Beauchamp Estates, added: “The super-prime lettings market in London is extremely buoyant, and we have seen a huge rush of enquiries recently.
“Lettings deals done during the first half of the year indicate there is a robust appetite for trophy rental homes, with both domestic and overseas clients happy to venture further afield from Mayfair, Belgravia, Knightsbridge and Chelsea, to homes in St John’s Wood and Hampstead.”