Ultra-high-net-worth overseas families willing to pay up to £40,000 per week for short term rentals for luxury apartments and houses, in preference to hotel suites, are generating a spike in lettings market values in St John’s Wood and Regent’s Park according to luxury estate agent Aston Chase.
With an increased demand for short term lettings of houses and apartments near London’s West End, Aston Chase reveal that new-build turn-key residences are becoming more preferable than four and five-star luxury hotels due to privacy, security and availability.
With the price for short-term rentals set at the long let prices plus 50%, tenants seeking family homes, such as those located on Hamilton Terrace (St John’s Wood), will pay around £40,000 per week. Tenants looking for apartments in developments such as The Atrium (Regent’s Park), and The Pavilions (St John’s Wood) will pay around £3,000 per week with rent for both houses and apartments being paid for upfront.
According to Aston Chase, summer short-term lettings last on average between one month and three months. Around 80% of tenants are families visiting London for tourism with the remainder including young working professionals coming to the capital for business. Aston Chase note that almost all of their short-term rental clients are seeking fully furnished, turn-key residences within secure new-build developments or family houses.
Notably, overseas tenants are coming from the Middle East (Saudi Arabia and Qatar), China (mainland and Hong Kong) and America. According to Aston Chase, opting for a summer rental property as opposed to a hotel provides more privacy, space for staff and nannies and flexibility whilst still offering state-of-the-art amenities and locations. Some of the most popular short-term rental destinations include the fully serviced modern blocks facing Regent’s Park and new development in the Marylebone area.
Ben Sloane, Lettings Director at Aston Chase, commented: “The demand Aston Chase is experiencing for short-term summer rentals has reached an all-time high. Signifying not only London’s popularity as a holiday destination but also its retained importance as a centre for business and commerce, short term rentals have become a preferred alternative for the world’s ultra-high-net-worth individuals. Due to privacy, security and flexibility, short term lets are proving more and more popular”.