As London’s prime property market moves into 2026, a clearer picture is emerging.
While sales activity showed signs of recovery towards the end of last year, it is the lettings market — particularly at the very top end — that continues to outperform. At Winkworth, we’re seeing growing confidence among high-net-worth tenants and landlords alike, as certainty returns and lifestyle decisions increasingly outweigh short-term market noise.
Super-prime rentals buck the wider trend Despite a slight softening in overall lettings volumes during 2025, the very top end of the market performed strongly. Tenancies priced at £5,000 per week and above rose by 17% year-on-year, highlighting a clear shift in behaviour among affluent renters.
Many ultra-high-net-worth individuals are choosing to rent rather than buy, favouring flexibility while assessing changes to tax policy, regulation and global economic conditions. For this cohort, securing a high-quality, turnkey home in a prime London location offers certainty without long-term commitment.
Demand strengthens as supply remains constrained
The close of 2025 brought renewed momentum across the lettings market. December saw:
- 12% more new tenant registrations than the same month a year earlier
- A 5% increase in viewings, reflecting improving confidence and urgency among renters
However, the number of tenancies agreed over the year dipped marginally, down 1% overall, and 6% lower in the final quarter. The primary constraint was not demand, but a continued shortage of available homes.
New rental listings across London fell again in 2025, reflecting a steady withdrawal of landlords in response to higher taxes and the forthcoming implementation of the Renters’ Rights Act in May 2026. This ongoing reduction in stock is now a defining feature of the capital’s rental market.
Rising rents support committed landlords
For landlords who have remained active, market conditions continue to support income growth. Tight supply has underpinned rental increases across prime markets:
- Prime Central London rents rose 1.7% year-on-year to December, accelerating from growth seen in 2024
- Prime Outer London rents climbed 2.5%, comfortably ahead of the previous year
Combined with softer pricing in parts of the sales market, this has helped improve rental yields — particularly for well-presented, energy-efficient homes that meet evolving tenant expectations.
Winkworth perspective: selective opportunity in 2026
The resilience of the super-prime lettings market reflects a broader recalibration across London property. Renting is increasingly seen as a strategic lifestyle choice, not a stopgap, while landlords offering quality, compliance and professional management are being rewarded.
At Winkworth, we believe 2026 will favour selectivity and realism. The strongest performance will come from homes that are correctly priced, immaculately presented and aligned with the needs of today’s global tenant base.
If you’re reviewing your lettings strategy or considering opportunities at the top end of the London rental market, our local teams would be delighted to offer tailored guidance and insight.
