An unprecedented new breed of renter has emerged – the international mega-rich ‘uber tenant’.
The species is confined to London, where they are prepared to pay weekly rent of up to and in some cases over £25,000.
Trevor Abrahmsohn, of Glentree Estates, said that in the last month alone his firm has done three such mega-deals, pulling in a total of £40,000 a week between them.
He said that ordinarily these international high net worth individuals would have bought substantial mansions in the region of £20m to £50m.
However, with devalued Sterling, 15% Stamp Duty and an ATED charge on the company which would normally make the actual purchase, he said these ‘uber tenants’ do not want to import their huge wealth into Britain.
By renting mansions, they can live to the same luxurious standards as if they had bought them.
Abrahmsohn said a typical ‘uber’ tenant would save £7.5m on Stamp Duty and £160,000 a year on ATED.
He said: “Since there are so few homes available of this kind to rent, we are pleading with our clients to allow us to let out certain mansions which hitherto have been only available for sale.
“This acute shortage is driving these ‘uber rents’ up to stratospheric levels, the like of which we have not seen in 40 years of trading.
“In one particular case, a client from South Africa agreed to rent a £12,000 per week property based on a FaceTime ‘walk around’, as he did not want to miss the opportunity of securing the deal.”
The luxury demanded by such tenants far exceeds what five-star hotels can provide.
Abrahmsohn said that the ‘uber’ tenants, who include shipping magnates and movie stars, typically request generous staff accommodation, plentiful garage space for their fleets of Rolls Royce Phantoms, Ferraris, Porsches and Aston Martins, and a private airport within 30 minutes.
Abrahmsohn described the UK’s property-buying taxes for foreigners as “obscene”.
The lettings business at Glentree is run by Amit Soni, who can now justifiably be called “letting agent to the rich”, just as Abrahmsohn has long been known as “estate agent to the rich”.