Luxury lettings values hit five-year high despite drop in supply
Summary
Research from Beauchamp Estates indicates that luxury lettings values in prime central London have reached a five-year high, with particularly strong growth in house rents and more moderate gains in apartment and penthouse rents. The report attributes the rise to falling supply and increased demand from domestic and overseas tenants, especially from the Middle East and the United States.
Why it matters
Surveyors working in prime residential markets should note the widening gap between supply and demand, as it can affect rental evidence, valuation assumptions and market commentary. The article also highlights potential policy and tax sensitivities that may influence landlord behaviour and future stock levels.
Key points
- Luxury house rents in prime central London rose by almost 70% in 2026 so far.
- Luxury apartments and penthouses saw rental values increase by more than 15%.
- Supply of rentals above £1,000 a week fell by 44.48% year on year in the first half of 2026.
- Demand increased from tenants from the Middle East, America and the domestic market.
- The article links reduced supply partly to concerns about tax changes and the Renters’ Rights Act.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
