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 arguably the capitals most exciting destinations with an exclusive neighbourhood, including local landlords the Howard de Walden family (positioned as the 10th commercial property tycoon in the UK according to the ‘Estates Gazette Rich List 2010′). Property prices match this exclusivity with a reported 60% of the properties sold in the area going to cash-rich Europeans looking for a secure investment outside of the weaker Euro Zone areas.

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.

West Marylebone:

Inevitably, those that cannot live in the area they want will probably move just next door to West Marylebone. At the moment, property prices are lower than for Marylebone proper and are low by Central London standards in general. With plenty of space for redevelopment that probably won’t last for long though, York St and Shillibeer Place have seen large developments in the last few years, showing the area is also on the up. As for Underground access to the area, Edgware Road station is a 1 minute walk from the area.

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!

As is going to be the case with all these hotspots, the transport links are second to none, on the Northern Line plus a dozen or so bus routes that link to Camden for good links to a major shopping area can only be a bonus. Rental properties can be forgotten about as availability is at an all time low, but considering the beauty of some of the houses that is understandable, houses on Church Row (considered the nicest road on the Heath) go for a cool 2 to 8 million. With house prices in Camden on the rise again, which is next door to Hampstead Heath, it can only mean good things for this hotspot.

South Hampstead:

Character is South Hampstead’s strongest asset; the high street has not been overtaken by the usual chain stores, with the area still containing many independent stores. So tradition still reigns supreme here despite its relatively central location, major streets like West End Lane, John’s Wood and Broadhurst Gardens are all in walking distance. South Hampstead is also has a reputation as one of London’s many celebrity enclaves, Emma Thompson and Matt Lucas are locals. There are plenty of studio flats in the area; starting prices begin at 200,000.

Covent Garden:

If we’re classing the last four areas of London as exclusive, then Covent Garden is the more mainstream and affordable option. Regeneration and redevelopment 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.

Belgravia:

One of the most expensive streets in Europe, the average price here is an eye watering 6 million. With that in mind, it’s not a surprise that it gained the honour of ‘most desirable postcode’ in 2010, incredibly popular with foreign millionaires as its property is incredibly modern, it doesn’t take a genius to guess that Belgravia remained unaffected by the recession.

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 to remain completely unaffected by the recession and so it has started the New Year with plenty of prospect.

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!

Howard writes for Just Commercial Mortgages the UK’s No1 site for the latest commercial mortgage rates and commercial property finance news.