The Epicentres for London Property Price Increases in 2011
There can be no denying the fact that London is one of the greatest cities in the world, which in turn makes it property some of the most sought in the world, for both foreign and British citizens. Throughout the credit crunch and recession, the London property market remained stable with no price drops and little or no price rises on the whole. So which areas of London are the hotspots? We take a look with the help of property website FabricProperty.
Marylebone:
Perhaps unsurprisingly topping the list is London's very own West End, Marylebone. The main attraction for this location is undoubtedly its centrality, positioned within walking distance of Oxford Street, Regents Park and Harley Street. This is bound to be a favourite for the avid shopper! The area is also fantastically connected with nearby underground stations including Marble Arch, Oxford Circus, Regents Street and Bond Street, making it a prime location for commuters. Transport is unsurprisingly a major factor for many when considering moving home, and as a result, properties located nearer to transport links in the city have seen price increases of up to 20k (according to research by Nationwide Building Society).
Marylebone is regarded as one of the most vibrant and lively districts in the Capital making it a number one choice for many high profile individuals. The main landlords operating in the area are the Howard de Walden family who are ranked tenth on the 'Estates Gazette Rich List 2010'; to label the area as exclusive is an understatement. However, research suggests that the main drivers of the property market in Marylebone are in fact Europeans looking to make secure investments; an estimated 60 per cent of the properties in this area are sold to foreigners.
With trends like this, it is inevitable that the already dearth of affordable housing would be even more acute in Marylebone, the only revenue comes in from buy-to-lets. Though this has a negative effect on redevelopment of the area in general, it leads to a convergence for younger age groups into the area who can't afford the get on the property ladder. Bottom line is the buy to let sector in the area is one to most definitely watch.
West Marylebone:
The lack of properties available to buy in Marylebone will undoubtedly drive property buyers around the corner to West Marylebone. Property Prices are less expensive here than in some other London postcodes, and there is still plenty of space for redevelopment. Two of the most recent developments in the area include Shillibeer Place and York Street. Marylebone is also undoubtedly the shopping hub of the capital; home to one of the most attractive shopping precincts. In regards to transport to and from the area, Edgware Road Underground is just a minutes' walk from West Marylebone.
Hampstead Heath and Village:
Third on the list is the countryside-esque Hampstead Heath and Village. This area is particularly popular for young families as it represents suburban life in easy reaching distance of the city centre (hence the term 'village'). The heath is just that, an abundance of green open space that enforces a quieter and more relaxed atmosphere. Additionally, the area is home to numerous top state and private schools; a young parents perfect location!
Once again, transport links come into the mix as a big pulling factor to the area. Positioned on the Northern Line and with numerous bus routes to nearby areas, such as Camden, it is a favourite for shoppers and commuters alike. For all the reasons already mentioned, there is little interest in buy to let in Hampstead Heath and therefore you are unlikely to find much rented accommodation. The most expensive properties in the area are located on Church Row and are usually put on market for anything from 2 million to 8 million. Perhaps one to consider if you win the lottery!
South Hampstead:
South Hampstead is one of the very few areas in London that has managed to maintain its character. The main high street has managed to avoid the takeover of big chain stores which makes South Hampstead quirky, traditional and unique. This makes it extremely popular among the celebs, with Emma Thompson and Matt Lucas being locals. South Hampstead is also known for its centrality with major areas such as West End Lane, Broadhurst Gardens and John's Wood being just a stone's throw distance away. Studio Flats sell for around 200k in South Hampstead - what a bargain!
Covent Garden:
Covent Garden is perhaps one of the more affordable districts for property hunters, and the recognition of this has meant demand in the area is beginning to increase. Covent Garden is all about regeneration and redevelopment following the success of Regent Street's revival. The property market is extremely dynamic with interest coming from international property investors along with Brits. 2011 is bound to be a strong year for the property market in Covent Garden, with future redevelopments already in the planning stages.
Belgravia:
Belgravia was actually given the award of 'most desirable postcode' earlier last year, despite the average property price in the area standing at a massive 6 million. The area is in fact one of the most expensive in Europe and is a strong favourite with celebrities and high profile individuals. The recession has barely touched Belgravia and 2011 looks to have the makings necessary to bump itself to the top of the property hotspots list.
Islington:
Islington is the creative hub of London and a massive favourite with students. To match this demand, there is a huge amount of buy to let properties on the market. One bedroom flats usually start at around 350 a week, whereas homes to buy have a starting price of around 3 million. A hefty amount I'm sure you'll agree! Islington has a total of 3 underground transport links in addition to a scattering of over ground railway stations. Islington was one of the only areas in the whole of the UK Investment Property to remain completely unaffected by the recession and so it has started the New Year with plenty of prospect.
So to wrap up our tour of London's hotspots, the driving factor of growth in these areas seems to be the continuing influx of foreign buyers. If there's one thing London property is, it's certainly as secure an investment as an investor can find, this is doubly true for the exclusive area of London, where luxury and convenience are paramount. Making it no surprise these areas are the ones being targeted by property speculators as they are a guaranteed investment with growth even through a recession.
