Tax changes have driven the exodus of wealth from the capital over the past 18 months and contributed to the drop in demand for rentals of over £5,000 per week. London is competing with other cities for an increasingly transient cohort of wealthy entrepreneurs and tech execs who can choose to work from anywhere, sustaining demand for shorter tenancy lengths.

Whilst the appetite for purpose-built, fully-serviced apartments has held up well, along with substantial family houses in best-in-class locations, other types of property can take longer to rent unless priced competitively. Chelsea Barracks, 1 and Twenty Grosvenor Square, The Peninsula and One Hyde Park are sought after for their high levels of service, with hospitality brands such as the Mandarin Oriental and Four Seasons perceived as familiar and unbeatable by international tenants.

The quality of services – concierge and security – are now prioritised over amenities, which are ‘nice to have’ but not essential. Rentals at such schemes are holding firm, with large lateral apartments, which are currently in short supply, commanding a premium.

With world-class schooling a key driver, turnkey family houses in Holland Park, Notting Hill, Regent’s Park and Chelsea are turning over – though, anything less well presented is increasingly difficult to rent. There’s stronger activity at the £20,000 per week level, driven by wealth creation in Asia and the United States. Slower uptake in the £5,000–£10,000 per week bracket means the choice of options has never been better, from a three-bedroom flat in Holland Park Villas to a six-bedroom house in Cranley Place, South Kensington. There are both good opportunities for tenants to negotiate rates, and for investors to acquire properties at reduced prices: gross yields of 3.5% in prime central London are around the best for 15 years.

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Understanding the Renters’ Rights Act

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