Martin’s Properties has been seeing strong rental uplifts as it announces completion of 22 residential leasing deals across its Chelsea portfolio.
The borough has retained its “enduring appeal to an increasing rental dynamic”, the company said.
66% of the lettings have been on the King’s Road and 50% of those have seen rental growth of over 13%.
The Kings Road has been buoyed by investment from the King’s Road Partnership Business Improvement District over the past few years, which Martin’s Properties jointly established and remains an active board member.
Over the past 12 months, Martin’s has seen 53% of residential assets let to the under-40s age bracket – rising from 42% in 2023 and 46% in 2024 – and 30% let to the 18-30 bracket (up from 21% in 2024).
Becky Milne, residential manager at Martin’s Properties, said: “Chelsea has always appealed to ex-pats and young professionals thanks to its charming and sophisticated nature with independent boutiques, restaurant offering, beautiful streets and thriving culture. However, over the last 12 months, we have noticed a changing demographic when it comes to demand. Internationals from the Middle East and North America continue to make up a large proportion of residents and visitors, with 75% of our portfolio let to overseas customers.”
The younger demographic can be explained by the proximity of local major educational facilities such as the Chelsea College of Arts, Kensington & Chelsea College, the London College of Fashion, The Fashion School and Imperial College London’s Chelsea and Westminster Campus, and medical and life science work and training at the likes of Chelsea and Westminster Hospital, The Royal Marsden, Hammersmith Hospital and St George’s Hospital.
Tenants are staying longer in the area too. Martin’s Properties numbers show that in the last 12 months, 30% of their customers took an initial 36-month tenancy with a 12-month break, uncommon in the private rented market and more often seen in the single-family housing sector. 33% of the Martin’s Properties portfolio is now let for three years or over and 60% of its customers have been long-standing Martin’s Properties customers for over three years.
The company has seen an emerging trend of international high-net-worth individuals (HNWI) leaving the UK altogether.
Becky Milne added: “We have seen at least three international tenants leave the UK over the past year due to changes in non-dom tax rules, including one who was looking for UK resident status after being here for 10 years. Despite a continuing demand for Chelsea, the profile of tenant has shifted. Much of our demand is for shorter tenancies as a result and, while this is successfully managed and offers its own opportunities, it is apparent that we are losing longer-term residents as a result of changing legislation.”
When vacancies do emerge in its Chelsea portfolio, Martin’s Properties is taking the opportunity to embark on significant improvement works including decarbonisation, refurbishment and other asset management activities, factors that can improve demand and drive rental growth.
Richard Bourne, CEO of Martin’s Properties, added: “Chelsea is renowned as a location that is vibrant, attractive, diverse and a symbol of affluence and success, which supports its enduring appeal. This is a key factor behind the strong performance of lettings and renewals within our portfolio. The Martin’s Properties includes a £230 million Chelsea mixed-use portfolio, a £100 million Regional commercial portfolio across Southern England and a new Self Storage business.
“To highlight the growth and support for these portfolios, Martin’s Properties have just acquired a new asset on the Kings Road and three more assets are under offer for the Regional portfolio and Self Storage business. The Martin’s business also includes Obsidian Strategic – a national strategic land promotion business. All of the businesses have seen substantial growth over the past five years.”
