The Rich are Renting, And Why That’s Actually Good News for London

Matthew Smith
2 days ago
3 min read

Tired of London, tired of life?

If you believed half the headlines about London lately, you’d think the capital had turned into a crime-ridden wasteland where the wealthy were packing their Hermès suitcases and jetting off to Dubai faster than you can say “non-dom.”

But wait. If everyone’s supposedly leaving, how come the super-prime rental market has just exploded?

According to research for The Times, luxury rentals have more than doubled in the past year. That’s not “a gentle rise.” That’s a 154% jump. In just the first six months of this year, 1,588 luxury lets (at £1,000+ per week) were signed, racking up £82.8 million for landlords. Compare that with the 559 deals in the same period last year, which generated £32.6 million. That’s not an exodus, that’s a queue.

And what a queue. We’re not talking poky studios with “period charm.” We’re talking Mayfair mansions going for £75,000 a week (£325,000 a month if you prefer to depress yourself in monthly terms). Another home in Marylebone fetched £28,000 a week. Proof that some people’s “rent problems” are on a slightly different scale than the rest of us.

So, what’s going on?

Stamp Duty, Non-Doms & Other Taxes

The reason the wealthy aren’t buying is simple: the guaranteed rise in house prices has become less a guarantee and more a risky bet. There's stamp duty that makes your eyes water and a non-dom shake-up that makes your accountant faint. The chancellor is making headlines with wacky ways to send chills through the bones of anyone with ambition and a home worth over £500,000. Why commit to all this and pay 19% tax up front when you can rent, avoid the hassle, and still have a base in London that you can walk away from at short notice?

Who’s Doing the Renting?

Americans fleeing politics or buying into the “London lifestyle” (think Notting Hill townhouses, St Johns Wood mansions and Mayfair penthouses).
Gulf families snapping up Knightsbridge and Belgravia like it’s a Monopoly board.
Wealthy Israelis gravitating towards Hampstead, Highgate and St John’s Wood.
Chinese families who used to buy modern new builds for their kids studying here, now renting instead.

Throw in a few tech billionaires who like to hop countries more than Air Miles collectors, and suddenly renting looks very chic indeed.

Proof London Still Has Pull

This is the bit the “London is dying” brigade don’t want you to hear: if the city were really in decline, no one would be paying £27,500 a week to rent a house in St John’s Wood.

Despite the scary headlines about crime, politics, and “everyone moving to the Cotswolds,” the truth is London remains irresistible. The world’s wealthy still want a London address, they’re just choosing to sign rental agreements instead of deeds.

London isn’t collapsing. It’s just evolving. The ultra-rich are adapting to taxes, politics and mobility by renting instead of buying. But the fact they’re still here, and still paying eye-watering sums for the privilege. This shows that the allure of London hasn’t gone anywhere.

Why London Still Pulls the Wealthy In

World-Class Schools: From top-tier prep schools to Eton/Harrodians in the suburbs, plus international schools (American School in St John’s Wood, Lycée Français in South Kensington). For global families, that’s a huge pull.
Culture: West End theatre, world-class museums (that are free, which always impresses overseas visitors), art galleries, music, Michelin-starred restaurants. Few cities offer so much in one place.
Jobs & Business: London remains Europe’s financial centre, a magnet for tech and creative industries, and a hub where deals actually get made.
Language: English is the global language of business. That makes settling in much easier compared to, say, Paris or Berlin.
Connectivity: Heathrow, private jet terminals, Eurostar to Paris and Brussels -London still has the best connections in and out.
Time Zone Advantage: The “sweet spot” between Asia and the US for global business.
Lifestyle: Parks, historic architecture, the best shopping streets in the world (Bond Street, Harrods, Selfridges, etc.). Plus, you can eat every cuisine under the sun within a ten-minute Uber ride.
Community: Wealthy families often already have friends, clubs, or networks in London, whether it’s a synagogue in Hampstead, a Gulf circle in Knightsbridge, or Americans in St John’s Wood.