Luxury house rents in prime central London have jumped by more than two-thirds as the number of high-end lettings transactions falls sharply, according to new research.
Average achieved rents for luxury houses and mansions reached £4,177 a week during the first half of 2026. That represents a 67.2% increase from £2,499 a week in 2025.
Luxury apartment and penthouse rents also increased. The average rose 15.1% to £1,957 a week, up from £1,700 last year.
The figures come from Beauchamp Estates’ latest Millionaires Letting in London survey. It covers properties rented for more than £1,000 a week across prime central London.
The estate agency attributes the increases to falling supply alongside stronger demand from wealthy domestic and international tenants.
However, the scale of the rise in average house rents should be viewed alongside changes in the mix of properties being let.
The number of luxury rental transactions fell sharply during the first half of the year.
Beauchamp recorded 1,911 lettings above £1,000 a week during the period. That was 44.5% fewer than the 3,442 transactions recorded during the first half of 2025.
The equivalent figure for 2024 was 3,814.
The remaining market has also shifted towards more expensive properties.
Homes renting for more than £3,000 a week accounted for a greater share of activity in 2026. The proportion of transactions above £5,000 a week increased from 4% last year to 5.23%.
Properties renting for more than £5,000 a week generated £24.09m during the first half of 2026. They accounted for 22% of prime central London’s rental revenue, compared with 18% last year.
Overseas demand increases
Beauchamp said enquiries from Middle Eastern applicants increased by 30% during 2026. Enquiries from US applicants rose by 20%, while Chinese demand increased by 5%.
The agency said seven in ten ultra-prime London households in its market now choose to rent rather than buy.
It linked that trend partly to flexibility, with wealthy households often renting for periods of one to three years.
The supply side of the market has also changed significantly.
Beauchamp pointed to increased landlord costs, tax changes and rental regulation as factors contributing to owners leaving the sector.
The Renters’ Rights Act introduced major changes to private tenancies in England from 1 May, including the abolition of Section 21 and the move to assured periodic tenancies.
Separate property income tax rates are due to take effect from April 2027. The basic, higher and additional property income rates will be 22%, 42% and 47% respectively.
London markets diverge
The contraction in supply has affected prime London districts differently.
Kensington recorded 326 luxury lettings during the first half of 2026. That represented 17% of transactions covered by the survey, up from a 14% share last year.
However, the actual number of Kensington transactions fell 42% from 562 in the first half of 2025.
Mayfair moved in the opposite direction. It recorded 114 transactions, slightly ahead of 112 last year.
Marylebone also increased from 81 to 87 transactions.
Elsewhere, transaction numbers fell sharply.
Belgravia and Knightsbridge recorded a combined 170 deals, down 32% from 249 last year.
Chelsea fell from 234 to 175 transactions. St John’s Wood dropped from 174 to 102, while Hampstead declined from 126 to 62.
Notting Hill recorded 59 transactions, compared with 115 last year. Primrose Hill fell from 100 to 52.
Despite the contraction in transaction volumes, some properties continue to command exceptional rents.
Deals reported during 2026 include a Mayfair house at £33,000 a week and an apartment at One Hyde Park at £32,500 a week. A Chelsea townhouse achieved £30,000 a week.
Chris Tinkler, head of lettings at Beauchamp Estates’ Mayfair office, said: “Falling supply set against rising demand has led to a significant rise in lettings values being achieved for luxury houses and apartments across Prime Central London.
“The capital’s luxury rental market is being driven by wealthy tenants from the Middle East, America and the domestic UK market, who need a London base.”
For letting agents operating at the top end of the capital, the figures point to an increasingly unusual market: substantially fewer transactions, but greater competition for available stock and much higher achieved rents at the upper end.