London’s traditional prime residential enclaves continue to command premium prices, but buyers in search of greater value may not have to travel far to find it.
In Mayfair and Knightsbridge, for example, the best properties average more than £2,000 per sq ft, with super prime new build schemes well in excess of that because of their quality and associated amenities.
But make the short journey across Oxford Street into Marylebone and the average value drops to £1,600 per sq ft. Despite significant investment in placemaking there over the past few years, this has yet to be reflected in the cost of second-hand homes.
Mapping these emerging pockets of value in the prime markets, the same goes for Westminster where the average property is £1,400 per sq ft – £700 cheaper than in nearby Belgravia. Neighbouring Pimlico offers even greater savings at £1,100 per sq ft.
The regeneration around Victoria has transformed the area into far more than a working environment but the residential offering there continues to provide significant value given its central location.
Hop on the tube to Ealing and buyers will find an average price of £670 per sq ft, currently 22 per cent lower than the rest of the prime west London market. However, transport improvements are likely to have an impact with the arrival of the Elizabeth line.
In the prime south west of London, Fulham hit its peak much earlier than other areas, influenced by mortgage restrictions in a market that had previously seen exceptionally strong growth. Prices have fallen by 15.4 per cent since the peak in March 2014, leaving the average value at £880 per sq ft. This is in stark contrast to its neighbour, Chelsea, which averages £1,600 per sq ft.
It’s apparent that buyers are still willing to pay a large premium for certain locations. Regent’s Park, for example, is 24 per cent above the average for prime north west London at £1,600 per sq ft, but over the road, around Primrose Hill, the cost per sq ft is £300 less.
When it comes to comparative value, there’s also a clear link to town centres and retail with properties commanding a higher price tag in hotspots such as Upper Street in Angel and Old Street in Shoreditch.