London is extremely short of housing, but if you’re uber-wealthy then you’ll have no problem finding an amazing place to rent out.
This week, a report in the Financial Times, said that the increased scrutiny from the Panama Papers leak is encouraging many potential buyers of London properties worth over £10 million ($14 million) to rent instead.
The claim isn’t completely out of this world — data from estate agents EJ Harris at the end of last year showed that super-rich students were already hoovering up luxury rental property across London annually.
It also showed in that some of the world’s richest people collectively spend up to £100 million ($156 million) on renting prime properties in London — sometimes pay up to £10,000 ($15,622) per week on a serviced apartment in Knightsbridge, Mayfair, and Marylebone in London.
But these aren’t overseas students snapping up affordable housing — they’re renting out places that most families would spend their lifetime trying to afford.
According to EJ Harris, over 107,000 international students studying in London contribute £600 million ($924 million) in rental income to the capital’s rental market every year, with the wealthiest Chinese, Russian, and Malaysian students spending around £72,000 ($110,850) per annum on properties in the most sought-after addresses in London.
So what makes these properties so expensive to rent? Check it out some of the flats here.
The wealthiest Chinese, Russian, and Malaysian students typically spend up to £1,500 ($2,310) per week to live in the most sought-after addresses in London -- Mayfair, Knightsbridge, and South Kensington.
The properties, like this one in Cadogan Gardens near Sloane Square, are always immaculate and have light, airy rooms -- even if it's a flat.
The bedrooms are impeccable and the rich parents of an overseas student will happily pay the equivalent of a year's wage for a typical British worker on a flat with a room like this.
EJ Harris says that on an annual basis 20% of inner London lettings clients are students, and 50% of these rentals are from overseas students.
The richest overseas students spend a huge £5,000 ($7,701) per week on luxury flats that have bedrooms bigger than the average London flat. This is a bedroom in Abbey Lodge near Regent's Park.
EJ Harris says that the reason for overseas students wanting a large flat for the time they're studying is so they can accommodate friends and family visiting them in London. Apparently, this can amount to £121 million ($186 million) extra in spending during the time a foreign student is studying here.
Despite the huge and envious space for entertaining, EJ Harris say landlords like overseas students because they are 'extremely good tenants, they are very studious and take their studies in London extremely seriously. They tend to be quiet, hard working and tidy.'
The estate agents say that 'smoking tends to be the only common vice' among wealthy overseas students. However the properties are so large, you can see why this wouldn't be too much of a problem.
However, overseas students that prefer to have more 'humble' rental properties can still snap up more regular two-bedroom apartments in Notting Hill, South Kensington, Shepherds Bush, or Bayswater for around £500 ($770) to £600 ($924) per week.
Business Insider Emails & Alerts
Site highlights each day to your inbox.