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Luxury Rental Market Boom

Building a Buy to Let Portfolio

Luxury Rental Market Boom

An increasing number of London’s super-rich are keeping the capital’s rental market healthy. By choosing to rent property rather than purchase their own top end pad, London’s rental market is buoyant, with rents of up to £5,000 per week on luxury accommodation.

Every year since 2011 lettings on homes worth £10m plus have doubled, rising by almost one third in Q1 2016 alone.

This shift to top end rental can be attributed to a number of factors, one of the main ones being the increase in stamp duty on luxury homes. On a purchase of £15m, the stamp duty payable would be £1.7m, equal to around three years rent for a similarly priced house.

Another factor to consider has been the fall in property prices in some of London’s wealthiest neighbourhoods and more recently the uncertainty in the run up to the EU Referendum.

And it's not just London - Manchester, Edinburgh, Bristol and Cardiff investment properties are also seeing a growth in luxury rentals making a this type of buy to let portfolio a good investment.Getting commercial loans and business finance to buy at the higher end is proving to be an investment well worth while.