For a long time Westminster has been one of the main prime markets in London. However, a change to the planning rules means time is ticking for the area. There could reach a point in the next few years where ultra high net worth (UHNW) buyers need to look elsewhere. We want to have a closer look at this today, then if you want guaranteed rent in Westminster, you can speak to us.

A shortage of trophy properties

The thing to keep in mind is UHNW individuals typically want to buy very specific super prime assets. They are looking at the top of the market, targeting homes worth tens or hundreds of millions. These tend to be massive properties, including sprawling mansions and huge penthouses. They want trophy homes that are rare or unique.

However, Westminster Council has a problem with land availability and a plan to deliver over 20,000 new homes. To deal with the situation while working to achieve that goal, they chose to introduce new space restrictions in 2021. Because of them, new housing is unlikely to get planning permission if it exceeds 200sq/m in size. The only caveat is if the building is a heritage asset; homes can be larger than the upper limit if the design is to preserve the property.

So, this means in the near future there won’t be any more properties being built in Westminster that target UHNW buyers. A few that got planning permission before the 2021 change are in the pipeline. For example, the Bryanston at Hyde Park has three and five bedroom apartments that are larger than 200sq/m. These would not get permission today.

What does it mean?

The main problem here is soon there will be no new supplies of the trophy properties. What it means is competition for existing ones will become fiercer. It could push up the prices massively. That could deter people from even considering them. It could also reduce general interest in the area and mean fewer people looking for services like guaranteed rent in Westminster.

Stamp duty will also have an impact on values. UHNW buyers typically face big additional tax bills when they buy trophy properties because they won’t be their main home. That means if they chose to sell in the future, the price will be up 20% or more just to cover the duty they paid.

What we will likely see is more UHNW individuals who want to buy in Westminster choosing older properties. They will then have the task of refurbishing them to a higher, modern standard.

Sadly, we could also see a situation where UHNW buyers simply don’t choose Westminster or London anymore. There are other locations where they can find a much wider selection of available properties, potentially with smaller price tags too. For example, there are so many in Dubai or New York it could take weeks or months to view them all.

With that in mind, experts are urging buyers to look at their plans sooner rather than later. It will be better to commit now before supplies dry up entirely in Westminster and prices start to go up.

Do you want guaranteed rent in Westminster?

Investors who do commit to buying assets in the area can get some exceptional help from us. We specialise in rent guarantees. What this means is we can ensure you don’t need to worry about finding tenants and getting an income from the properties. The service will take care of both with help from us and the local council if appropriate. It saves you time, reduces risk, and protects your income.

So, if you are looking for a fantastic solution, speak to us about guaranteed rent in Westminster. We have a wealth of experience and work to deliver the best results every time.