The rental of a £29,000 per week mansion in Belgravia has given one agency its fourth £20,000 per week “super-let” in as many months.
The on-form Knight Frank team was also behind last month’s rental of a £27,500 per week townhouse on Mayfair’s Upper Grosvenor Street, along with two other giant long-let deals, as top-end buyers and vendors opt to sit things out instead of chancing the sales market…
Tom Smith, head of super prime lettings at Knight Frank told us: “This is our fourth let at £20,000 per week plus in as many months following up on our recent letting of Upper Grosvenor Street which we concluded in May. Further re-enforcement that savvy vendors and discretionary sellers are looking at the rental market for the time-being as opposed to selling in today’s market at a price that they aren’t satisfied with. There is always the very real possibility that a tenant, once in place, could become a buyer given that the profile of super prime tenants and super prime buyers are essentially the same.
“Part of the incentive for tenants is the luxury of sitting on their hands, observing the market until such time as there is more clarity on pricing without the attendant responsibility of ownership and the immediate requirement to pay 12% or 15% SDLT i.e. the equivalent of 3 – 4 years rent on a comparable property.”
The latest super-prime property let in this recent flurry, a Grade II* listed mansion on Eaton Place, was built in 1829 by Thomas Cubitt and extends all the way back to encompass a house on Belgrave Mews South, thereby forming one of the largest single family homes in Belgravia with a total floorspace of around 12,000 square feet.
A four-year restoration project by engineers, architects, artisans, designers and curators has brought the whole thing up to a world-class standard, with the very latest tech, grand reception spaces, a cinema, spa, pool, landscaped courtyard garden and roof terrace. The particulars described it as “one of the most refined homes London has to offer” with a “grand romance of Regency architecture and interiors”.
According to Knight Frank’s latest survey of activity in the PCL lettings market, demand looks to be healthy across all price ranges, with a 13% y-o-y boost in the number of new prospective tenants registering between January and May, along with 26% more tenancies agreed, and 24% more viewings.
It’s been noticeably busier in the £5,000+ pw range though, where new registrations have soared by 62% on a like-for-like basis (compared to 7% between £1,000 and £5,000 pw).
Writing in PrimeResi last month, top-end property consultant Simon Barnes highlighted the growing trend for “super-lets” across PCL, adding that savvy developers and vendors were increasingly taking a “pragmatic approach” to the current climate and offering their properties to the rental market for a two to three year period, rather than testing the stricken sales market. Read the full article here.