The UK is one of the most attractive countries in the world to invest in property. London, in particular, is a popular city for both investors and residents. According to The Times London beat the likes of Paris and Berlin to become the highest-ranked European city for property investment.
In this blog, we reveal the hotspots investors are considering and the key financial figures you will need to factor in during your property search. Our research shows the following five areas to be the most exclusive neighbourhoods in London, each offering its own distinctive style and character.
St John’s Wood
St John’s Wood is fairly mysterious even to the residents of London. Situated in the heart of the city it is known as a family-oriented neighbourhood and is one of the city’s most upmarket residential locations with elegant style housing surrounded by charming tree-lined pavements.
For the cricket fans, St John’s Wood is a place like no other. Home to the world-renowned Lord’s Cricket Ground it offers exclusive apartments and penthouses overlooking the cricket field. A short walk up the road brings you to the zebra crossing near Abbey Road Studios which has become an international tourist attraction for all Beatles fans who recreate the most iconic album cover of all time.
The average flat in 2021 sold for £1,068,403 whilst the average house sold for £3,919,775. St John’s Wood has a relatively high rental yield compared to other neighbourhoods in London, with a 3.6% yield. It has seen consistent growth year on year and will remain, for the foreseeable future, a magnet for the high net worth.
Knightsbridge
Knightsbridge is among the most affluent neighbourhoods in the world. It is located south of Hyde Park and northwest of Belgravia in London’s West End. Arguably the neighbourhood’s most famous attraction is the iconic department stores of Harrods and Harvey Nichols. Both are luxury shopping destinations attracting visitors from around the world.
This part of the capital has many impressive buildings, presenting an architectural style typified by the large red brick gabled houses.
It is no surprise Knightsbridge is in extremely high demand, rents range widely depending on the specific flat and development. The current average rental yield is around 2.8%. At the very top end is One Hyde Park; one-bedroom apartments start from £4,000 per week and rents rise in line with the amount of living space, as well as access to views directly onto Hyde Park. 10 Lancelot Place is another development you should investigate.
With the demand for rental homes in London continuously increasing, now is the perfect time to invest in a place like Knightsbridge. The average flat in 2022 sold for £2,190,333, whilst the average house sold for £16,000,000.
Chelsea
Chelsea is the perfect place for those who enjoy a river walk in London. This stretch along the Thames’s north bank is just over a mile long. With its elegant garden squares, red-brick mansion houses and white stucco crescent streets, Chelsea attracts high net worth’s from across the globe and has been home to many celebrities including Rolling Stones members and The Beckhams.
The majority of sales during the last year were flats selling for an average price of £1,469,934. Terraced properties sold for an average of £2,603,750 with semi-detached properties fetching £4,373,192 The borough has excellent long, mid and short-term property investment opportunities. The average annual rental yield for properties in Chelsea is 4.0% – one of the highest in London.
Kensington
The Kensington architecture and property are a reflection of the area’s prestige. It is an upmarket neighbourhood with top flagship hotels, embassies and trophy assets of ultra-high net worth, given all the more charm by the area’s royal connections.
The area has seen some of the most lucrative prime developments in Central London. Thornwood Gardens, Holland Green, One Kensington Gardens and Holland Park Villas are some of the most high-end prime developments that you will find anywhere in London. Properties sell for an average of £1,200 per square foot, making it one of the most expensive in London. The average property in Kensington is valued at £1,362,622, however in 2022 the average sales price for a flat was £1,295,212, whilst the average house sold for £3,107,778.
The current rental yield in Kensington is 3%, and our search further shows the area is performing even better than before the pandemic and is expected to improve investors’ rental yields.
A future development is Cluny Mews, located in the Royal Borough of Kensington and Chelsea, it will provide 35 luxurious apartments in a private gated mews close to the broader Earls Court regeneration project. The first homes are expected to be completed at the end of 2023.
Notting Hill
Notting Hill has long held an unconventional reputation. This is still evidenced in its iconic pastel-coloured houses, offbeat music venues and trove of antique shops. The area still attracts those in the arts with the mix of local and international residents creating a cosmopolitan air.
Portobello Road is one of the most popular areas in the neighbourhood – the thriving Portobello Market is where you will find an array of vendors including; stylists, vintage shops, jewellery, cafes, a fresh fruit and vegetable market and the famous Portuguese custard tart. Once a year the largest street festival in Europe rolls to town making the streets a blur of colour with millions of people visiting to celebrate the Notting Hill Carnival.
Like all other London areas, prices are rising in Notting Hill. In the prime markets, the average price per square foot is £1,870, although it can vary between £1,300 and £2,600 depending on the property’s location and spec. One factor which can impact property prices is outside space. The Notting Hill area has excellent green spaces, communal gardens and fantastic parks. Kensington Gardens and Hyde Park delights are just a short walk away.
Conclusion
With a rich history, lifestyle, better growth opportunities and more, there are countless reasons why London is one of the most desirable cities on the planet. High net worths around the world are exploring options to invest in London given its demand and promising future. If you would like to discuss investment opportunities or find out more about these investment hotspots, contact us on 020 8088 5465 or email info@articusfinance.co.uk.
