We have seen a significant increase in the number of superprime properties up for rent in Prime Central London (PCL) over the last year. As agents we are certainly benefiting from the falling number of transactions in the prime sales market and the increase in property available to let.
Riding out the Storm
A majority of new superprime landlords are made up of would-be vendors who likely feel that this is not the best climate within which to sell. Either this or they may be struggling to sell due to purchasers being hit hard with combination of rising stamp duty and politico-economic uncertainty. Rentals can be an effective way for superprime property owners to ride out the current storm and gain greater visibility for the future.
Post Brexit and fresh from a surprising US Election result some time will need to pass before our clients are able to make clearer decisions as more information becomes available. For those wishing to sell it is like shooting in the dark when trying to ensure that they are getting the best price.
Quality and Space
Every renter is different, and practical requirements can obviously differ from person to person. However the one thing that connects all superprime rents is an insistence on quality of finish and interior design.
Superprime purchasers tend to look more for a space and layout as a priority with the décor often being seen as something that can be (and often is) changed. Renters focus much more on a good quality turnkey solution and will pay much more attention to furniture and fixtures and fittings. With unfurnished properties the same scrutiny will go toward paint finishes, flooring and appliances. In sales – this matters much less!
A Complete Solution
Many superprime properties will come with basic staff such as cleaners. In terms of furniture there is an increasing number of properties that come completely furnished and interior designed to a very high standard. There is a definite market for this with renters appreciating a complete solution that they can just move into. It is also not uncommon for a landlord to redecorate a property to a renters specification – but this is almost always down to whatever deal the renter is offering.
At Draker, we often receive offer from superprime renters with rent being paid in advance. This can sometimes be used by a renter to try and strike a better deal with the owner. The minimum that tenant would need to pay upfront would be the first months rent and a security deposit. But this would strictly be in accordance with satisfactory references being produced.
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