It’s never a bad time to own a property in the areas surrounding London’s Hyde Park, but with a recent boom in rentals in the area, if you’re a property investor looking for a sound investment, now really is the time to think about purchasing property here.
Images of Hyde Park are some of the most scenic we conjure up when thinking about sights in London. Laced with pretty lush grass and calming lakes, the park is one of London’s most popular and largest open spaces.
There are many benefits to having a rental surrounding postcodes – and we’re not just talking about the close proximity to the amenities of central London, lovely scenic strolls or fairy-tale horse rides in Hyde Park itself. The area is highly sought-after with a lot of corporate tenants, families from the Middle East and wealthy mature students happy to pay high rents. We have seen applicant numbers increase 9% in 2014 compared to 2013; a reflection of the rising popularity and demand for rental apartments and houses in the prime location.
Prices for properties north of Hyde Park have always been historically lower to those to the South (Knightsbridge), West (Kensington) and East (Mayfair). Even though sales values have grown steadily in recent times, slower growth is viewed by many as unjustifiable given the proximity to its wealthier Zone 1 neighbouring areas. There is, however, an upside for pricing in this area if you are looking to buy here.
If you’re an investor thinking about your next move, whether you’re based overseas or in the UK, we have international offices knowledgeable about the area as well as a branch in Sussex Place, next to Hyde Park. Our friendly lettings staff can provide on the spot information including house price growth and rental yields.
Of course the area is not cheap to buy in, but there is strong tenant demand and small studio apartments achieve high yields. A fine example is St Stephens Gardens in W2 where several Victorian Grade II listed building swere converted into studio apartments and have been extraordinarily popular amongst overseas students wanting to get a slice of central London living. Yields here have been as high as 5.5% which for prime central London is very decent and hard to find anywhere else in Zone 1.
Paddington has also risen in popularity and is not just attributed to a movie concerning a certain bear. The regeneration of Paddington Basin has seen a number of high end developments arrive. The latest is 3 Merchant Square by European Land which offers one, two and three bedroom apartments finished to a very high standard with floor to ceilings windows, wide plank wood floors, 24-hour concierge and underground parking. Rents start from £500 per week for a 1 bedroom apartment rising to £2,000 per week for penthouse apartments.
Other developments nearby include Paddington Central (now called Sheldon Square), Paddington Walk (now re-named Munkenbeck) and West End Quay which was the first major development to go up in the area where rents start from £425 per week. The lure of the canal and the convenience of Paddington train station are major selling points; the Heathrow Express takes you to Heathrow Airport in only 20 minutes and the convenient access in and out of the West End and The City is ideal for commuters.
Adjacent to Hyde Park is Bayswater, one of London’s most cosmopolitan areas and a lively hub full of diverse restaurants and shopping amenities. In fact, Bayswater is only 1 mile from Oxford Street, so you’re close enough to walk, but far enough to escape the 24-hour hustle and bustle. Queensway boasts the best Chinese restaurants in London and has Whiteleys, a shopping centre which is full of entertainment amenities including The Odeon Lounge – one of London’s finest cinemas. Older buildings like Princess Court and Queens Court, right on Queensway are still very popular as their rents are not as high as the newer developments with one bedrooms starting from £350 per week.
Families thinking of moving close to Hyde Park not only have the open spaces of London’s most famous park in which to spend their days, but there are a great selection of schools in the area, including The American School in St John’s Wood. In fact, for an area so closely located to the centre, areas like St John’s Wood, Bayswater and Hampstead are still residential and are all within a 2 mile radius of Hyde Park.
Notting Hill Gate has become one of the Capital’s hotspots. It’s popular with people wanting to live in a lively diverse area with an edge. Here is somewhere you can enjoy some of the finest restaurants in London, party hard to the yearly Notting Hill Carnival or wander down Portobello Road on Saturdays to pick up an unusual item or 2. The latest development at the Ladbroke Grove end of Notting Hill right on Portobello Road is a large regeneration scheme called Portobello Square where apartments rent from £400 per week.
One thing that’s striking about the areas surrounding Hyde Park, and especially the W2 postcode is, the gorgeous white stucco fronted Victorian and Georgian period buildings which give the area a truly upmarket feel and are extremely popular with overseas tenants.
A fantastic example of a modern twist on a Georgian theme is a development called “The Lancasters” located directly opposite Hyde Park. It was completely rebuilt, save for the facade, in 2010 to create impressive and stunning new homes with a health complex (pool and gym) in the basement and some interiors done by the Queens cousin, David Linley. The sales prices reflect the quality but equally tenants are happy to pay a premium to live here when flats are available. Rental prices range from £750 per week for a studio rental apartment to 3 bedroom mansion flats at £5,500 per week.
If you would like more information on why you should invest in Hyde Park, please contact us and don’t forget to visit our Investors Review page, keeping you up to date with the very latest property news.
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