A new breed of renter has come onto the London market. ‘Uber rich’ tenants that are preferring to rent properties instead of buying and are willing to shell out weekly rents of over £25,000 in some cases.
Normally, these international high net worth individuals (ranging from top business executives to celebrities to shipping magnates) would have bought substantial mansions in the London area in the region of £20m to £50m.
However, a variety of factors are causing these ‘uber tenants’ to decide they don’t want to import their huge wealth into Britain:
- The devalued British pound
- 15% Stamp Duty
- A lump-sum tax that anyone buying a property must pay
- Annual Tax on Enveloped Dwellings (ATED) charge
- An annual tax payable mainly by companies that own UK residential property valued at more than £500,000.
- If the dwelling is owned completely or partly by a company, partnership or collective investment scheme – for example a unit trust or an open ended investment vehicle
By renting mansions, they can live to the same lavish standards as if they had bought them. It’s estimated that the tenants can save, on average, £7.5m on Stamp Duty and £160,000 per year on ATED. In addition, they are still able to require large staff accommodation, garage space for their fleet of luxury cars and private airports within 30 minutes – much more than even a five-star hotel could provide.
There is certainly a scarce supply of homes available for rent at this top end of the London rental market. Estate Agents, who act for landlords not tenants, are exploiting this scarcity to drive up the rents. A relocation professional has the opposite role. Our duty is to secure the best rental terms for the renter, who is our client. We also have access to ALL available homes, not just the ones that are on the books of one particular Estate Agency.
By putting together a carefully sourced and selected shortlist of rental homes, and presenting them to the VIP renter, we save our clients’ time and money. They avoid having to deal direct with Estate Agents and we can protect their privacy, which is often an important aspect for these wealthy clients.
If you’re looking for the best possible deal on an extraordinary rental home in London, do get in touch with me. Just send my team a message using this CONTACT FORM and we’ll set up a free consultation to review your needs.
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