Rental values for high-end properties in prime central London have increased significantly in the first half of 2026, despite a sharp contraction in available supply, according to new research from Beauchamp Estates.
The firm’s Millionaires Letting in London Survey found that rental values for houses across prime central London rose by 67% compared to 2025, while apartments and penthouses saw increases of 15%.
Market dynamics
Average rental values for houses and mansions reached £4,177 per week, or £217,204 annually, representing a 67.15% year-on-year increase. For apartments and penthouses, average rents stood at £1,957 per week, or £101,764 per year, up 15.12% from the previous year.
The survey examined properties let between January and June 2026 at weekly rental values exceeding £1,000. The highest-value transactions included a Mayfair property on Mount Street let for £33,000 per week and a Chelsea townhouse on Cheyne Walk let for £30,000 per week.
Supply constraints
The number of rental properties available in this segment has declined markedly. In the first half of 2026, there were 1,911 rentals valued above £1,000 per week, down 44.48% from the same period in 2025.
Demand from international tenants has increased, with enquiries from Middle Eastern applicants rising by 30%, American applicants by 20%, and Chinese applicants by 5% during 2026, according to Beauchamp Estates.
The agency noted that seven out of 10 households in the ultra-prime segment now choose to rent rather than purchase, which may reflect uncertainty around potential property tax changes and the implementation of the Renters’ Rights Act.
Jeremy Gee, Managing Director of Beauchamp Estates, said: “Despite the Renters’ Rights Act requirements, London landlords with turn-key luxury homes are facing less competition, rising rental values and strong demand from discerning tenants. However, the Labour Government need to be mindful that excessive legislation and taxation are harmful to the capital’s rental market, hence the contracting supply pool.”
He added: “Households from around the world choose to live and spend their money in London and many prefer to rent rather than buy, so it is important that the Government helps the capital’s rental market to thrive and grow.”
Market outlook
The divergence between rising demand and falling supply has created upward pressure on rental values across prime central London. The trend mirrors broader shifts in the UK property market, where supply constraints have affected various segments.
While landlords with properties in the high-end segment have benefited from reduced competition and higher achievable rents, the shrinking supply pool raises questions about the long-term sustainability of the rental market in prime central London. The balance between regulatory requirements and maintaining an adequate supply of rental properties remains a key consideration for policymakers and industry professionals alike.
