News that a billionaire from the Middle East has agreed to take on the UK’s most expensive residential lease is yet another sign that London property sales are forming a micro market different from elsewhere in the country.
The rent on the four-bedroom penthouse in Knightsbridge, London is £55,000 a week, adding up to £2.86 million a year, and putting further pressure on prices of homes in the capital.
With the cost of becoming a home owner continuing to move beyond the reach of many first-time buyers, the market for rental properties in popular areas of the city is also becoming more expensive and difficult for those seeking reasonable rented accommodation.
There have been press reports of gazumping and potential tenants losing out to rivals who provide larger deposits or offer other inducements to landlords to win the right to live in a convenient flat at an inflated rent.
Although the level of rents in London is exceptionally high because of demand, some properties in other parts of the south east of England, such as Brighton, can also command expensive rents due to the parallel cost of buying a house.
It is good news of course for the property owners, many of whom have buy-to-let homes bought with costly finance in recent years and who are now seeing a better return on their investment than at the start of the current recession.
Residential conveyancing solicitors who specialise in this branch of property sales with an efficient and proactive service are able to advise potential landlords on procedures to maximise the financial benefits and minimise complications.