New breed of 'ritzy renters'

There was a time when renting a home was almost exclusively the province of impoverished students and young workers waiting to get a toe on the property ladder.

But now a new breed of super-rich renters have emerged, nicknamed the "ritzy renters". Latest figures show the proportion of wealthy Britons renting in London's most expensive locations has doubled in a year.

Native Londoners now make up 20 per cent of "top end" renters - defined as people paying between £750 and £5,000-a-week for a home.

This part of the rental market has grown by around a third, as residents of all nationalities - who would normally be buying - are biding their time in rented accommodation. Some are waiting for property prices to fall. Others are simply waiting for their dream home to become available.

Last week a survey of London estate agents showed that increasing numbers of homeowners are becoming "inbetweeners" as the market-becomes more jittery, fuelled by comments from Bank of England governor Mervyn King that prices are almost certain to drop. Matthew Hobbs of FPD Savills said: "We are seeing far more Brits in the upper price brackets, and far more renters in general."

Mr Hobbs recently let a large house in Kensington to the family of an American tycoon, after they sold their own property for £4 million. "I was expecting them to buy a mansion flat. Instead they are renting a house for £4,000 a week."

Mr Hobbs has also just let a two-bed cottage in Kensington to a British couple, who are paying around £600 a week, far less than it would cost on a mortgage.

The new breed are also taking advantage of relatively low rents, and as our Look here too! box shows, the latest figures from FPD Savills and Winkworth estate agents show renting can be affordable for people keen to live in luxury.