20 January 2015
Four new areas, Vauxhall and Nine Elms, Victoria and Pimlico, Hampstead and Holland Park and West Kensington, have joined the elite group of London postcodes where homes cost and average of £1,000 per square foot. Eye-watering price rises over the past year in SW8, the postcode for Vauxhall and Nine Elms, are being credited on the demand of overseas investors who have pushed average values per square foot up 32%, from £841 to £1,107 over the past yearIn Pimlico and Victoria, SW1, another area where thousands of new homes are being built, average prices per square foot rose 16% from £966 to £1,123 accordingly to today’s study by Lonres and Dataloft. Leafy Hampstead in NW3 saw a 12% increase from £968 to £1,086 while West Kensington on the “wrong” side of Hyde Park, saw a 20% rise from £927 to £1,113. (Victoria Station - Visit London.com)The above comment was recently added to the Evening Standard, a leading London newspaper and raises the question of what is happening on the rental market as well. Overall London rents are still increasing but at a much lower level than previous years.The overall expectation is that rent will increase across all parts of London by 3.5% - 5% in 2015 with the prime locations, as stated above to outperform London as a whole. Areas such as Pimlico are now finding that the average rent for a 1 bed apartment is now £700 per week with a 2 bed now breaking the £1,000 per week. There remain areas of London that are not facing such high increases and therefore it is important that good local and up to date advice is available to ensure a successful home search. Ask us for details on what is happening within the property market in London.