When it comes to London’s prime property market, one thing appears certain: the numbers are going up. According to Knight Frank, prime central London prices grew 1.7 per cent in the third quarter of 2013. Despite climbing values, though, demand is rising as well: the number of new buyer registrations soared 28 per cent in the first nine months of this year compared to the same period in 2012.
Rents, too, have enjoyed a strong summer this year, despite a slight decline in rates: high net worth students competing for studios and one bedroom apartments drove enquiries up 50 per cent for estate agent W.A. Ellis.
With strong demand in both the rented and residential sector, it is perhaps no surprise that prime London real estate is so popular among both investors and high net worth individuals looking for a secure place to deposit their wealth. Both domestic and international buyers have helped to accelerate London’s real estate ahead of the rest of the UK. For those seeking the strongest possible returns, though, homes in established prime markets have already seen their values increase. Where, then, can buyers look?
TheMoveChannel.com profiles some of the top prime hotspots you don’t know about:
Located in the southwest of London, Richmond is at arm’s reach of Kensington and Chelsea, but while values in the familiar favourite have jumped 5.9 per cent annually, according to the Land Registry, Richmond has seen prices climb 7.1 per cent in the last 12 months. With average values remaining below prime central London, there is still capital growth to be enjoyed by quick investors.
Hackney may not always conjure up images of prime lifestyle, but as buyers look further outside of the centre of the capital, East London’s borough is becoming increasingly trendy – and not just among young business start-ups. Prices have leapt 8.7 per cent on a quarterly level alone, driven by in-demand areas such as Shoreditch, where celebrities such as Keira Knightley have owned homes.
Another area that is seeing take-up increase among entrepreneurial class, Brixton is in the middle of major regeneration. Schemes to transform the Lambeth suburb have helped to take the bohemian neighbourhood back towards its middle class origins, pushing prices up by almost one-third between 2007 and 2012, according to Savills.
Kings Cross station has recently undergone a significant facelift – and the property market is enjoying a similar process. Google is planning to move to the area in 2016 away from the more traditional market of Holborn. With more technology firms expected to follow in its wake, the catalyst is there for a strong surge in values.
Savills highlights Islington as a prime property market that is now reaching its prime in its September 2013 Spotlight report. Indeed, according to Land Registry data, Islington is now the seventh most expensive borough in terms of average property price, behind Richmond, Hammersmith, the City of London, Camden, Westminster and Kensington. Average prices, though, remain almost $1 million below that of the number one prime market: Islington is maturing, but has a long way to catch up.
As demand for rising areas outside of the usual prime central London hotspots continues to climb, property prices will also increase. Buyers looking for more affordable homes near these desirable locations will turn to neighbouring postcodes, in turn help to push up their values.
When it comes to London’s prime property market, one thing appears certain: the numbers are going up. That applies to the number of prime properties too.