London’s Ultra-Luxury Rental Market is Booming, And This Turnkey Rental is The Epitome of Modern Elegance
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London’s booming luxury real estate market continues to attract wealthy local residents and ultra-high-net-worth individuals from the U.S., India, Dubai, and beyond.
In addition to multi-million-dollar home sales, the world’s wealthy are turning towards renting super-prime real estate. A new report from Beauchamp Estates’ Ultra-Prime Barometer Wealth Report shows that more billionaires are choosing to rent because of rising interest rates, high stamp duty, and possible tax increases next year should there be a change in government from the Conservative Party to Labour. The report also reveals that UHNWIs are spending between £5,000 and £30,000 (or $6,320 and $37,900) per month to lease luxury homes throughout Central London.
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“The super-prime lettings market has boomed in 2023,” Erik Holmgren, lettings manager at Beauchamp Estates, said in a press statement. “Over the past six months, Beauchamp Estates has secured super-prime lettings deals which have generated a combined annual rental income of over £5.5 million (or $6.95 million), with tenants from America, China, and the Middle East being particularly prominent in the prime Central London market over the last six months.”
This demand for beautifully finished luxury rental properties is encouraging many owners to generate some additional rental income from their secondary and tertiary homes while they’re not there. In particular, Battersea Power Station, one of Central London’s most sought-after new developments, is experiencing this exact demand.
The historic Battersea Power Station on the south bank of the River Thames was once the largest power station in the U.K. The Grade II-listed building has since been reimagined into a mixed-use development with upscale shopping, restaurants, and entertainment, as well as luxury homes. It is also home to Apple’s newest headquarters, along with other office spaces.
Renowned American architect Frank Gehry recently completed his first housing project within the Battersea Power Station development, which is called Prospect Place and comprises 308 residences with perfectly framed views of the historic power station.
The owners of one of the apartments within Prospect Place, a family from India who use the property as a pied-à-terre, recently tapped London-based interior design studio Black and Milk to renovate the interiors and add personal touches. They’ve now put their part-time pad in London up for lease for $31,500 (or £25,000 per month).
Built to complement Gehry’s impressive architecture, Black and Milk redesigned the apartment to the owners’ exacting tastes. Called Pico House, the 1,052-square-foot residence has three bedrooms, three bathrooms, a formal entry, a grand living room, and an airy kitchen.
“The spatial configuration of the apartment was one of the most challenging aspects of this project,” says Olga Alekseev, creative director of Black and Milk. “Everything is at an angle, and we had to redefine the living room and kitchen area while working with the unique shapes of the building.”
Alekseev explains that each apartment is sold as a white box, and the firm wanted to create warm and cozy interiors with a sophisticated design that also paid homage to the history of the site. The apartment features bold hues, curved lines, and large-format windows with views directly over the Battersea Power Station.
A formal entrance gallery lined with wood-paneled walls and ceilings and wood floors provides a grand sense of arrival. “It creates a sort of moody passage into the main living area,” Alekseev says. “We specifically designed this entry gallery to highlight the art on the walls, which is white. The owner’s wife has an art gallery in India, so she wanted to have a lot of clean wall space to display her art that she sourced from there. It’s her distinct stamp on the apartment, but looks universal to a range of tastes.”
Each bedroom also has a different look and style, but streamlined color and material palettes. The living space feels open and airy and is anchored by a large green sofa, a desk, and a media cabinet with Samsung’s The Frame art TV that displays artworks of your choice. One of the most notable parts of the apartment is the bar area, which features a curved bar island with seating and alcohol storage on custom shelving surrounding a column.
“There is an inclined, structural column in the living area, which we worked with to add custom floating shelving with backlit lighting,” she says. “In India, it is very prestigious to keep alcohol in the house. We researched a lot about their culture and aspects of their lives that are very important. The bar overlooks the windows, so you can sit and enjoy a drink with views.”
Alekseev says that another challenge was making the small-ish bedrooms feel larger, which they achieved by integrating the side tables and the headboard, a curved wardrobe area, and floating vanities that allowed for more open space. For the bathrooms, they left the original finishes but added elements like additional storage and mirrored cabinets.
Finally, the kitchen offers a feeling of brightness. With lighter hues than the rest of the home, it features a long central marble eat-in island overlooking the power station with cabinetry and shelving in varying shades of gray. Each room also features vibrant art sourced from the family’s gallery in India, adding pops of bright color to the home.
“At first the clients wanted it very neutral, but once we discovered that, by night, the apartment had a very moody vibe, we suggested some really cool deep colors,” she says. “We wanted to create cozy luxury, where it’s super luxurious but you don’t feel you need to compromise on comfort. You can tuck in to watch a movie with popcorn and wine and not be worried about getting your white couch stained.”
Click here to see more images of Pico House.
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