Strutt & Parker has seen a sharp increase in buy-to-let investors in London over the past two years.

The leading estate agent’s recent data shows that in the first quarter of 2014, 26.2% of its buyers in Chelsea were purchasing property for investment, compared with just 2.3% of buyers in Q2 2012.

Zoe Rose, Head of London Lettings at Strutt & Parker, said: “The rental landscape in prime central London is fast changing. Investors are no longer fixed on chasing high rental yields, and are happy to invest for the capital growth alone. Consequently, investors are incorporating larger family accommodation into their portfolios, resulting in more family houses coming to the market.”

“With discerning, long-term renters now the norm, more and more landlords are comprehensively refurbishing their properties in order to attract the best tenants and this is also having an impact on pricing and the type of property most in demand.”

Strutt & Parker’s tenants in London rent on average for 29.8 months, far longer than the national average of 20 months (according to ARLA). The majority of Strutt & Parker’s tenants in London are in their 20s and 30s.

Zoe Rose comments: “We are finding that there is no longer such as obsession with home ownership amongst our younger tenants. The majority of our tenants are in their 20s and 30s and very used to renting. Singles or couples in their 20s tend to favour one and two bedroom flats, whilst married or cohabiting couples in their thirties, sometimes with one baby, usually prefer three or four bedroom mid-size houses or large lateral apartments.”

The ultra high-end sector of the ‘trophy’ prime central lettings market is also back – Strutt & Parker is currently marketing a 10,000 sq ft penthouse in Knightsbridge and a nine bedroom newly refurbished property in Rose Square in Chelsea, both for £25,000 per week. Strutt & Parker’s Notting Hill in particular has gained significant market share in W11 for luxury properties to rent at £5,000+ per week.

The market is increasingly fast-paced with the most coveted rental properties going to sealed bids and even being let without ‘physical’ viewings – mirroring the buoyant sales market in London.

Zoe Rose comments: “We recently let a property on Coulson Street to a married couple from Geneva – with a virtual viewing conducted via Skype. The property had only been on the market for a day but the prospective tenants were so keen to secure it long-term it went for the asking price of £1,675 per week for three years with a market inflation increase factored in from the outset.”

70% of Strutt & Parker’s landlord base is British, whereas 75% of its tenants are international – often from France, Italy and Spain – which is driving some interesting changes in the marketplace.

Zoe Rose explains: “Renting is the norm in prime European cities like Paris, Milan and Barcelona – and the influx of young and affluent international tenants flowing into London is driving up standards in the capital as their expectations of rental property are very high. We describe this tribe as the ‘GloMads’, Global Nomads who are open to travelling from place to place over longer periods of time, often for employment.”