As one of London’s most prestigious areas, for those who can afford it, Knightsbridge is in extremely high demand. Located in the centre of super-prime London, buyers and tenants will always be looking for homes in this world-famous location.
Due to very strict planning restrictions where many buildings are listed, even minor works are a complex task and because of this, there are very few new property developments in the area. This contributes to Knightsbridge’s charm, where the well looked-after historic period buildings remain the mainstay.
Many of today’s tenants renting in London like brand-new homes which is why new-build developments are in such high demand, however, there are a large number of tenants who are attracted to London’s iconic period conversions, meaning properties of all types are in demand for rental. The demand ranges from ultra-modern, cutting-edge design like One Hyde Park; to modern large developments like The Knightsbridge and smaller boutique developments such as Chesham Place by Nomran Foster and Candy & Candy where recently the most expensive single apartment was sold for £46m. As always period buildings like Marlborough on Walton Street and period conversions and townhouses like those situated in Chelsea’s Cadogan Square and Belgravia’s Lowndes Square continue to be popular.
Knightsbridge attracts keen interest from many international buyers such as billionaire Aristotelis Mistakidis, who recently purchased a property in Chesham Place and recognises the area as one of the top five locations to live, not just in London, but around the globe which he believes ensures that any investment here will not only be safe but always do well.
According to the last UK Census, rentals in Knightsbridge accounted for 34% of all the properties, which is by far the highest percentage out of all the residential options, with owner occupiers coming second with 22%.
The type of tenant living in your property is vital, and thankfully, Knightsbridge attracts the most affluent. They range from young professionals from booming sectors such as banking, hedge funds and law; well-heeled overseas students with parents looking for the very best for their children, couples looking for a central pied-a-terre to corporate families. Budgets tend to be generous with tenants willing to pay what is required to get the home they desire.
Knightsbridge’s appeal is down to the plethora of trendy bars, the vast selection of restaurants featuring a variety of cuisines, such as world-ranked Japanese restaurant Zuma on Raphael Street, one of London’s finest oyster restaurants Hawksmoor on Yeomans Rows, or Maria Vanna, a world-class Russian restaurant at 116 Knightsbridge.
Many of London’s best hotels can be found in the area along with the very best shopping led by two of the most renowned department stores, Harrods and Harvey Nichols. Not forgetting of course that Knightsbridge is home to a fine selection of schools making it particularly appealing to families wanting their children to receive among the best education the UK has to offer.
Tenants wanting to live in Knightsbridge demand the very best in terms of location, facilities offered, specification of the property and its décor and furnishings.
Rents range quite widely depending on each specific apartment and development. At the very top end is One Hyde Park with concierge services provided by Mandarin Oriental. Here one bedroom apartments start from £4,000 per week and rents tend to rise in line with amount of living space as well as access to views directly onto Hyde Park. Investors can expect yields under 2% gross, but investing here leads to capital preservation and capital growth. Nearby The Knightsbridge faces Hyde Park and has a back door alley entrance to Harrods, along with concierge provided by Hyatt Hotels. Rents start from £1,000 per week for a one bedroom apartment, £1,500 per week for two bedroom apartments and from £2,500 per week for three bedroom apartments. Yields here will be at about 2.5% gross, and again, investors are looking for capital growth.
Another superb development is 10 Lancelot Place which also has top-class amenities including 24-hour concierge and swimming pool, but is considered a little more discrete than The Knightsbridge. Rentals here are comparable to The Knightsbridge as will the yields.
An established development completed in the early 2000’s is Crown Lodge on Elystan Street which is very popular as it has 24-hour concierge, underground parking and a swimming pool. Rentals here start at £550 per week for a one bedroom apartment and £750 per week for a two bedroom apartment. The yield here will be around 3.5% gross which is still on the low side but capital growth has been strong and is predicted to continue.
Then there are delightful period flats in mansion blocks like Marlborough, tucked away behind gates on Walton Street. Here one bedroom apartment’s start from £500 per week and two bedroom apartments let for £700 per week. Yields will be around 4% with good prospects of capital growth.
Finally, period conversions let extremely well as they still form the majority of the buy-to-let housing stock in the area. A converted studio flat in a period house in Beaufort Gardens, a cul-de-sac off Brompton Road and only 100 yards from Harrods, will cost £300 per week with a yield around 4%. Hans Crescent, situated moments from Harvey Nichols, is a popular street and gives an example on prices where a one bedroom in a red brick house will let for £650 per week and will attract around a 4% yield for a landlord. A two bedroom in a period conversion will let for £1,100 per week and give the landlord a yield of just under 4%. All aimed at long-term capital growth for landlords in one of London’s most popular locations.
Shopping in Knightsbridge and Chelsea is the very best London has to offer. The streets are lined with exclusive designer boutiques and the world’s largest brands choose to have their flagship stores in the area including Christian Louboutin on Lowndes Street.
Knightsbridge isn’t isolated though; a good selection of amenities are available nearby as well as some of London’s other popular areas. Fancy a walk round Sloane Square? Well, it’s only a few minutes’ away and on the journey you can admire the beautiful buildings and stunning communal gardens. The area is home to world famous museums including the V&A Museum, Science Museum and Natural History in nearby South Kensington. Continuing on through SW3 is the well-known Royal Albert Hall which is one of London’s most famous landmarks. These are all just under a mile away, along with the other notable attractions including Kensington Gardens and Kensington Palace. The shopping meccas and theatres of the West End, with Bond Street, Marylebone, Mayfair, Oxford Street and Marble Arch all just a short bus ride from Knightsbridge.
The wonderful open spaces of Hyde Park are less than a five-minute walk from Knightsbridge and is reputable as London’s most popular and largest park. From picturesque bike rides near the Serpentine or lazy picnics during the summer, there is so much to do at Hyde Park and it’s often top of most people’s lists for places to visit in London.
With demand for rental homes in London continuously increasing, now is the perfect time to invest in property in a prime location like Knightsbridge and maximise your rental income. Often landlords need to be creative to get let their property, but in Knightsbridge, it’s not a question of how many will be interested, but more of a question of the type of tenant you want.
If you own a property in Knightsbridge and would like to let it out, please contact our friendly lettings negotiators who can help you find your ideal tenant.
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