Luxury house rents in prime central London have seen a significant increase, rising by more than two-thirds in the first half of 2026. New research indicates that average achieved rents for luxury houses and mansions reached £4,177 per week, a 67.2% increase from £2,499 per week in 2025.
Luxury apartment and penthouse rents also saw an increase, with the average rising by 15.1% to £1,957 per week, up from £1,700 last year. These figures are from Beauchamp Estates' Millionaires Letting in London survey, which covers properties rented for over £1,000 a week.
The estate agency attributes these increases to a combination of falling supply and stronger demand from wealthy domestic and international tenants. However, the scale of the rise in average house rents should be considered alongside changes in the mix of properties being let.
The number of luxury rental transactions fell sharply, with 1,911 lettings above £1,000 a week recorded in the first half of 2026. This represents a 44.5% decrease from the 3,442 transactions in the first half of 2025. The market has also shifted towards more expensive properties, with homes renting for over £3,000 a week accounting for a greater share of activity.
Overseas demand has increased, with enquiries from Middle Eastern applicants rising by 30%, US applicants by 20%, and Chinese demand by 5%. Beauchamp Estates also noted that seven in ten ultra-prime London households in its market now choose to rent rather than buy, partly due to flexibility.
On the supply side, increased landlord costs, tax changes, and rental regulation are cited as factors contributing to owners leaving the sector. The Renters' Rights Act introduced significant changes to private tenancies in England from May 1, including the abolition of Section 21. Separate property income tax rates are due to take effect from April 2027.