Share post:
If you’re selling a luxury property in London and haven’t yet received a good offer, don’t leave it vacant. Let it generate income as a professionally managed short-let in one of the world’s most visited cities, without compromising the sale process.
Key Takeaways:
- Selling a luxury property in London takes an average of 6 months (180 days) to sell, according to the Coutts’ London Prime Property Index released in April 2026.
- Empty homes lead to significant financial losses through missed rental income, property deterioration, upkeep costs, and higher council tax fees.
- Flexible short-letting offers a profitable alternative for luxury properties waiting to sell, while keeping them available for viewing and eventual sale.
- Estate agents can strengthen client retention by helping them monetise unsold luxury properties.
- A partnership between estate agents and property management companies ensures properties remain guest-ready and sale-ready throughout the sale process.
Why Is Selling a Luxury Property Taking Longer in London?
Coutts’ London Prime Property Index revealed that sales of luxury properties began with “subdued momentum” in Q1 of 2026, down 18.8% from 12 months prior. In fact, it’s the lowest quarterly total after the pandemic. With buyers and sellers going through a prolonged “wait-and-see” period, prime London properties are taking an average of 180 days to sell.
Why is this happening?
A survey of agents conducted by Savills pointed out that buyers and sellers are less confident this Q1 of 2026 compared to their sentiment in Q4 of 2025, when markets were more susceptible to Budget tax changes.
Savills also reported that the domestic market continued to struggle with higher mortgage costs, triggering property price sensitivity that is expected to persist throughout 2026. The economic disruption caused by the global event could also further shrink the buyer pool. As a result, sellers face a -0.7% drop in property values in Prime Central London, bringing the 12-month decline to -4.8%.
This puts not just sellers, but also estate agents in a difficult situation. When a property remains unsold, the cost of ownership continues. When owners are unhappy with the sale of their luxury property, it reflects badly on estate agents.
What Does It Cost to Leave a Luxury Property Empty?
Leaving a luxury property can cause owners to incur financial losses due to holding costs, higher council taxes, and even rising insurance premiums. But what would hurt most is the property’s potential to generate income, which could be as high as £6,002 per week.
According to Beauchamp Estates’ Mid-Year 2025 Lettings Survey, luxury properties marketed as a short-term rental could earn:
- £6,002 (homes) per week
- £2,082 (apartments) per week
If a prime property for sale sits on the market for 6 months on average, that means:
- Luxury homes could lose £154,337
- Luxury apartments could lose £53,537.14
On top of this, owners will face council tax obligations, utility standing charges, service charges, maintenance expenses, insurance costs, and security concerns.
Is there a better alternative while waiting for a luxury property to sell?
Fortunately, there’s a flexible letting strategy that luxury property owners can use so they don’t have to lose money while waiting for the right buyer to make an offer. By converting luxury properties for sale into professionally managed rentals, owners can earn income while keeping their property sale-ready.
Flexible letting is a strategy that combines short-term and mid-term letting. This allows properties to enjoy the higher nightly rates of short-lets and the stable rental income from mid-lets.
At City Relay, we used flexible letting to help a property owner earn a net rental income of £77,000 while they waited for the right buyer. This allowed the property to be available for viewings while the frequent housekeeping ensured it remained spotless and well-maintained between guest stays.
In another case, one property owner approached us because they wanted to wait out the slow market but did not want their property to sit empty. We were able to use short-term letting to help them earn £10,000 in 60 days while they waited for the right market conditions.
These cases are proof that renting while waiting to sell offers significant earning potential for property owners.
Even estate agents can benefit from this letting strategy by partnering with property management companies. Instead of letting unsold luxury properties sit empty, they can be transformed into professionally managed rentals that will generate income for their clients.
Can Flexible Letting Increase A Property’s Chance of Selling?
Yes, flexible letting can increase the chances of a property selling. Both short-term and mid-term letting require properties to be fully furnished before letting. So if you make your luxury property guest-ready, it automatically becomes sale-ready as well.
When managed by a professional property management company, the housekeeping and cleaning services between bookings help ensure the property maintains its presentation standards for buyer viewings.
You also benefit from ongoing maintenance oversight after every guest turnover, giving owners peace of mind that it maintains its premium condition at all times.
At City Relay, we adhere to a standard for home interiors to ensure premium furnishings across our portfolio of rental properties. This helps ensure the property remains in excellent condition, whether it’s for guests or buyer viewings.
Did you know…
According to the 2024 survey from the Home Staging Institute, staged and furnished homes sell for approximately 10% more and 73% faster than empty properties.
How Will Flexible Letting Benefit Property Owners?
Instead of allowing unsold luxury properties in London to sit empty, property management companies can market them as short-term or mid-term accommodation for the millions of visitors coming to the city. According to Condor Ferries’ UK Tourism Statistics, an estimated 30 million international and domestic tourists visited London in 2024.
This is the market that can keep your luxury property occupied and earning. Flexible letting is the best strategy to use because:
- Properties can remain actively listed for sale
- Viewings can be scheduled around bookings
- Owners earn income immediately
Estate agents can also use this for their portfolio of unsold properties. When luxury properties remain on the market for extended periods, owners become frustrated, price reductions become necessary, and instructions risk being moved to competing agencies.
A flexible letting strategy ensures they stay in control of the sales process and keep their clients satisfied as they wait for the sale to complete. This leads to a stronger retention rate and reduced pressure to secure quick discounts. Most importantly, the client relationship remains with the agent throughout the process.
Why Let a Luxury Property Sit Empty When It Can Earn?
Selling a luxury property in London does not mean you have to leave it empty for months at a time. There’s a better way to sell it by earning income while you wait for the right offer to come by.
This opens an incredible opportunity for both property owners and estate agents as sales timelines extend across the prime property market. Having a professionally managed rental property allows the sales process to continue while generating revenue from what could have been an idle asset.
If you’re selling a luxury property and you want to understand how much income you could earn while you wait, get in touch with City Relay. If you’re an estate agent with a growing portfolio of unsold properties, we offer a special partnership that will keep your clients satisfied and your business thriving even in a slow market.
FAQs
Can I rent out my luxury property while it’s on the market?
Yes, you can rent out a luxury property while it’s actively being marketed for sale. Many London property owners convert their properties into professionally managed short-lets that can generate more than £6,000 in weekly revenue.
As long as buyer viewings are prioritised and bookings are scheduled around it, you can keep your luxury property sale-ready while earning extra as you wait for an offer.
Does short-term letting make it harder to sell a luxury property?
Not necessarily. As long as the booking schedule does not prevent buyer viewings, it should not keep your property from being sold. This is where a professional property management company can help.
With City Relay, we ensure bookings are scheduled around buyer viewings and the property is cleaned regularly, inspected frequently, and kept guest-ready. Keeping the interiors staged helps present the property in the best way, even increasing its perceived value and attracting good offers.
How much can a luxury London property earn while waiting to sell?
The income potential varies depending on the location, property size, and seasonality. But since London is a top destination, you can be assured that the demand is always there. According to Beauchamp Estates, a short-term luxury rental property can earn £6,000+ per week. This can help offset council tax, maintenance costs, insurance premiums, and other expenses as you wait for the right buyer.
Why should London estate agents offer short-let solutions for unsold properties?
The longer sales timelines mean more luxury properties are unsold, leading to higher frustration among property owners. This is not good for the estate agency business. While it’s hard to control the market, estate agents are not helpless in keeping their business afloat.
Instead of waiting, they can encourage property owners to short-let their properties to earn income while waiting to sell. This keeps the property in the market while the owner enjoys extra income and the estate agent benefits from higher retention rates.
