Top London Property Hotspots For 2011
London is probably one of the World's hotspots, in regards to property hunting, in the whole of Europe, let alone the UK. Being the business capital and home to some of the world's biggest banks, the area is popular with as many foreign individuals as UK business men and women. Using research conducted by property website FabricProperty, we look at the Capitals main property hotspots, the places landlords are raising commercial mortgages on, and the reasons why there is so much property hype in the area. So, what does 2011 have in store for the busy capital?
The cosmopolitan West End, Marylebone: So the top of the list is the 'Cosmopolitan West End' itself, Marylebone! Centrality is no doubt it's major advantage this year, in a triangle between Oxford St, Regents Park and Harley St, not to mention it's well placed and connected to the Underground with no less than four stations nearby (Oxford Circus, Marble Arch, Bond St and Regents Park) covering four tube lines, perfect for commuters. Having so many stations nearby though also has other advantages; a report from 2010 by Nationwide found that a house located near a train station could see its price increased by a maximum of £20,000, no doubt doubly true in London.
Marylebone is increasingly seen as one of the most exciting and vibrant areas of London, the major local landlords are the family of Howard de Walden, the 10th richest commercial property tycoon in the UK. With such exclusive ownership driving the area, everybody wants to get in on the ground floor, reports and some statistics show the belief that cash rich Europeans are behind the majority of property deals who see British property as a risk free investment, especially with the problems in the Euro zone.
However, there is an extreme lack of affordable properties to purchase in the area, with the largest revenue actually coming from buy-to-lets. Therefore there is little room for redevelopment and instead proves a desirable choice for the younger generations who cannot jump onto the property ladder in the current market. As a result, the area's buy to let market is definitely one to watch for 2011.
Pop next door to West Marylebone: Want to live in Marylebone but can't afford it? Why not try its little brother West Marylebone, 5-10 minutes away? Marylebone's success was always going to spread some stardust to its neighbours and West Marylebone seems to be covered. Shillibeer Place and York Street are the first of no doubt many more redevelopments in the area, an area that includes Edgware Road station a one minute walk from West Marylebone. With cheap prices by Central London standards and heavy room for redevelopment, the West's rise could soon be as fast and successful as Marylebone's.
The picturesque Hampstead Heath and Village: Third on the list is the countryside-esque Hampstead Heath and Village. This area is particularly popular with young families as it represents suburban life a short trip from 'the city'. 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!
As with all the hotspots on our list, transport links are a major plus point for the area. On the Northern Line and at least a dozen bus routes which all lead to and through neighbouring Camden again make it ideal for commuters and serial shoppers. With such a rare combination of positives in the area, acquiring a rental property is extremely unlikely; rentals in Hampstead Heath have never been lower. No doubt another factor for this is that the most expensive properties in the area (on Church Row) all go for between £2m-£8m, showing the area is not particularly the cheapest on the list. North London as whole is experiencing increasing house prices, Camden in particular, so it's only a matter of time before it spreads to Hampstead Heath again, keeping it a hotspot for 2011.
South Hampstead: One of the most unique characteristics of this area is that the main high street hasn't yet been overrun by the high street chains. There is a huge amount of character in the area, which makes it a favourite with those who enjoy the more traditional lifestyle. However, South Hampstead still has an extremely central location and major streets such as John's Wood, West End Lane and Broadhurts Gardens are just a short walk away. The area is famous for its high volume of famous residents including Emma Thompson and Matt Lucas. Studio apartments in the area have a starting price of around £200,000.
An affordable alternative, Covent Garden: If we're classing the last four areas of London as exclusive, then Covent Garden is the more mainstream and affordable option. Property development is the name of the game around here, spearheaded by Regent St's revival, which in turn has attracted international property magnates and developers of all stripes to Covent Garden. Going into 2011, the success of Covent Garden dynamic and driven property market can only increase, especially as it becomes more affordable.
With the standard price averaging at over £5.5 million, Belgravia very rarely leaves the list of property hotspots. Last year saw Belgravia gain the award of most desirable postcode in the UK, a title it very rarely loses, it will no doubt remain the same throughout 2011. Naturally being a focal point for celebrities and well known millionaires and billionaires makes the area very sophisticated and modern. It goes without saying the area was unaffected by the recession and credit crunch.
Islington: The area of Islington is doing particularly well in the letting market at the moment, and as a major hub for the arts, young wealthy students are attracted to the area. The average price to rent a one bedroom flat in Islington starts around £350 a week whereas properties to buy in the more popular streets such as Colebrooke Row price at around £3m. Islington has a total of 3 Underground railway stations in addition to a few over-ground stations but is just a small walking distance from Central London. Islington is one of the only local authorities in the UK that has actually experienced steady property price growth throughout the recession. For this reason, its strong property market makes it a popular borough within the capital and in turn a property hotspot for 2011.
So there you have it, the top London Property Hotspots (for millionaires!) in 2011. The committed interest from international property investors and a scattering of high profile Brit's showing a keen eye in these areas have undoubtedly been the driving forces pulling them through the recession relatively unscathed. It is clear that London property fails to disappoint the property investor, making it a popular area to make one lucrative and secure deal for those who have the money!
About the Author
This article was written by financial expert Timothy Frodsham, who writes for http://JustCommercialMortgages.com, they specialise in finding the best commercial mortgage rates for all their customers.
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