Rents in some of London‘s poshest postcodes are surging as expats fleeing Dubai search out luxury homes to escape the conflict in the Middle East.
Estate agents have described being ‘inundated’ with enquiries from wealthy Britons looking to swiftly relocate to the capital, with some willing to pay more than £3,000 a week for high-end lettings.
It comes as expats, lured to Dubai and other Gulf states by low tax rates and sunny weather, found their lives shattered after Iranian missiles began raining down last month.
Among them is Luisa Zissman, 38, the former Apprentice star turned influencer, who returned with her family from Dubai last week saying she was in her ‘refugee era, displaced from my home’.
Tom Bill, head of residential research at estate agent Knight Frank, said: ‘London’s long-standing reputation for stability comes into sharper focus during moments of geopolitical volatility.’
Other property agents said they had been swamped by requests from families returning to the UK.
‘Our offices are absolutely inundated with enquiries for short lets of six months or a year,’ said Becky Fatemi, executive partner at Sotheby’s International.
‘These clients are willing to pay upwards of £3,000 a week.
Luisa Zissman, 38, former star of The Apprentice and now an influencer, is among the hordes of wealthy Brits fleeing back to the UK from Dubai
Empty sunbeds on the beach in the Jumeirah Beach Residence in Dubai on Wednesday
‘Many people traditionally quit the Middle East for Europe for a period of months when the schools break up in June, but they are coming now because they want to be safe.’
She added that most expats fleeing the Gulf were seeking ‘a swanky proposition, a home that’s fully furnished and ready to move into, as they have left most of their stuff behind’.
Areas in demand include west London’s Kensington, Chelsea, Notting Hill and Holland Park.
Ms Fatemi said that despite the conflict, few of those returning from the Gulf were looking to stay in London long-term.
‘These people may be looking for a base, [but] they are not permanently relocating to London – yet. They are waiting to see how Dubai endures the war,’ she added.
The tide of new applications threatens to aggravate a shortage of rental homes in the capital’s smartest postcodes.
These were already in scant supply as a result of Labour’s Renters’ Rights Act, which is due to come into force in May and will make it harder for landlords to evict tenants and end lease contracts.
It has pushed many landlords to sell up, reducing the number of rental properties on the market.
The surge in demand from expats has provided a welcome boost for London’s high-end property market, which has struggled in recent years after the scrapping of non-dom tax status and a hike in stamp duty, causing wealthy buyers to leave the UK.
However, those returning have been warned they face other costs on top of steep rents. Many could become eligible for British taxes because their return may alter their UK residency, although HMRC can make concessions for ‘exceptional circumstances’.
However, some may see higher taxes as a small price for not having to worry about their safety.
Others may have headed for the exit after discovering they risk arrest for posting footage of the war on social media, under laws in the Gulf that clamp down on free speech. Last week, a 60-year-old British man was arrested in Dubai after allegedly filming Iranian missiles flying over the city.
