The Marylebone property market in 2015 - What do the last 12 months show us about capital growth?

Date Published 28 December 2015

As another year almost bites the dust, I found myself engaged in a conversation with a solicitor friend of mine, who is extremely eager to enter the property investment scene. He began explaining to me, how he understands that there are great financial rewards to be made through the Marylebone Buy-to-Let market, especially with regards to long term and future prospects. However, he was a bit fuzzy in regards to just how quick these `future` returns would come about, considering the capital growth of properties; thus I decided to explain to him (as I shall discuss with you in this article) just how Marylebone has `grew`, taking merely the duration of our recent year into account.
I can tell you that approximately 112 properties have been sold within the Marylebone area during the last 12 months. If we magnify these figures, taking several areas into consideration, with respect to 1 bedroom, 2 bedroom and 3 bedroom properties we arrive at these figures:

Averages for 1 bedroom flats (last 12 months):
Baker Street (W1U): Price Bought - (£709,000), Current Estimated Value - (£749,000), Capital Growth - 5.5%
Portman Mansions, Chiltern Street (W1U): Price Bought - (£1,441,200), Current Estimated Value - (£1,584,000), Capital Growth - 9.5%
Devonshire Street (W1G): Price Bought - (£822,475), Current Estimated Value - (£913,500), Capital Growth - 10.5%

Averages for 2 bedroom flats (last 12 months):

Gloucester Place (W1U): Price Bought - (£907,500), Current Estimated Value - (£950,500), Capital Growth - 4.6%
Blandford Street (W1U): Price Bought - (£1,787,500), Current Estimated Value - (£1,875,000), Capital Growth - 4.8%
Queen Anne Street (W1G): Price Bought - (£1,360,000), Current Estimated Value - (£1,444,000), Capital Growth - 6%

Averages for 3 bedroom flats (last 12 months):

Seymour Place (W1H): Price Bought - (£2,740,460), Current Estimated Value - (£2,933,500), Capital Growth - 6.8%
Bryanston Court, George Street (W1H): Price Bought - (£3,912,500), Current Estimated Value - (£4,087,000), Capital Growth - 4.4%
Montague Mansions (W1U): Price Bought - (£2,460,000), Current Estimated Value - (£2,668,500), Capital Growth - 8.2%

Using these areas as our guideline, we can see that the overall, average price paid was an estimated £1,793,403. When we compare this average purchase price, with the current estimated values of our featured properties, we acquire a worth of £1,911,666; this totals to a capital growth of 6.4% in a year - quite remarkable right! We can also gather that 1 bedroom properties (using our chosen areas) have been the biggest achievers this year, with an average of 8.5% capital growth! In comparison, 2 bedroom properties have achieved an average of 5.13% capital growth, whereas 3 bedroom properties have acquired a slightly higher capital growth of 6.46%. The speed of capital growth in Marylebone is rapid and I can honestly advice you that, unlike the traditional saying of `patience is a virtue`, with property investment in Marylebone, there really is no time like the present! The longer you play the waiting game, the longer you are missing out on the enormous financial gains and are actually achieving less value for money, with property prices increasing so swiftly in such a short space of time. In addition, not only do the rising purchase prices of properties illustrate the booming Marylebone market, but the real time market value shows us how properties, which are not currently changing hands are still nevertheless, also increasing in worth; that is the beauty of property investment!

Should you need any information or guidance on the contents of this article or any of your own personal, investment endeavours, please do not hesitate to contact us.