How does Capital Growth in Marylebone compare with the last 20 years: Is it speeding up or becoming more stable!?

Date Published 01 February 2016

A few days ago I had the most interesting chat with a newlywed couple, who funnily enough are the proud new owners of a Buy-to-Let property in Marylebone - newlywed to each other as well as their new property! They were asking for my advice as they are planning for their future together and wanted to understand just how quickly their property will yield them a return for their investment. I explained to them that the Marylebone property market is one of the most financially rewarding and the capital growth of properties, increases its worth very quickly, in short spaces of time. But the next question they posed was the most interesting: they asked whether now is a good time for capital growth in Marylebone, compared to recent years. I told them that I would do my research and come back to them and in this article I will present to you the results that I also presented to them. In order to express an accurate as well as extensive illustration of Marylebone`s capital growth during the last 20 or so years, I will be separating this period of time by three sets of 5 years, portraying 4 different streets and using 1 and 2 bedroom flats as our models.

Average Capital Growth for 1 bedroom flats:
York Street (W1H) -
· Average Purchase Price in 1996: £110,200 - Average Market Price in 2001: £252,000 (Capital Growth = 83.5% )
· Average Purchase Price in 2003: £342,000 - Average Market Price in 2008: £444,100 (Capital Growth = 26%)
· Average Purchases Price in 2010: £487,520 - Average Current Market Price: £761,250 (Capital Growth = 44.5%)

Upper Berkeley Street (W1H) -
· Average Purchase Price in 1996: £91,907- Average Market Price in 2001: £187,333 (Capital Growth = 71.5%)
· Average Purchase Price in 2003: £211,250 - Average Market Price in 2008: £286,875 (Capital Growth = 30.5%)
· Average Purchase Price in 2010: £330,000 - Average Current Market Price: £492,214 (Capital Growth = 40%)

Average Capital Growth for 2 bedroom flats:
Marylebone High Street (W1U) –
· Average Purchase Price in 1996: £107,500 - Average Market Price in 2001: £283,555 (Capital Growth = 98%)
· Average Purchase Price in 2003: £394,983 - Average Market Price in 2008: 593,437 (Capital Growth = 41%)
· Average Purchase Price in 2010: £675,000 - Average Current Market Price: £1,049,666 (Capital Growth = 44.5%)

Wimpole Street (W1G) –
· Average Purchase Price in 1996: £212,200 - Average Market Price in 2001: £408,750 (Capital Growth = 66%),
· Average Purchase Price in 2003: £485,740 - Average Market Price in 2008: £717,900 (Capital Growth = 39%),
· Average Purchase Price in 2010: £1,075,000 - Average Current Market Price: £1,899,428 (Capital Growth = 56.5%)

From our findings we see a clear pattern where the highest capital growth (out of our 3 time periods), occurred between the years 1996 to 2001. Then there was a slight dip in the speed of capital growth, (between 2003 and 2008) in the Marylebone property market, where it became more stable and slowed down. But since 2010 to the present moment we have seen a lucrative increase in the fortunes of capital growth that resemble the pre 2000 years. In addition, if we look at these figures in real money terms, since 2010 to our current 2016 period there has been an incredible increase in the value of properties. Even though the years, 1996 to 2001 brought about a capital growth that almost doubled in this time frame, the real value of money increased usually by around £100,000-200,000. This can be illustrated with Marylebone High Street, which increased by £176,055 in this time frame. However during 2010-2016, in real money terms the capital growth may be shown to be lower, but the actual increase in property worth being achieved is much more lucrative and profitable; there are increases ranging from £300,000 to £500,000! Using Marylebone High Street again we can see a £374,666 increase in this period of time, although (as we have already mentioned) the capital growth for this street was higher in 1996-2001, the real money being earned was only £176,055, whereas in these recent times we are achieving a much more generous value of a further £198,611! Now is certainly the time to invest in the Marylebone property market, the longer you wait, you are quite simply allowing others to benefit from lucrative profits, whilst the days are going by and with them asking prices are always increasing, as well as the value of properties. Instead of seeing other properties increase in value, by investing in the Marylebone property market sooner rather than later, you can be witnessing your property`s value increase and your capital growth gradually climbing up with each passing day.

If you need any further assistance regarding capital growth or anything else property related, please email me at: max@oudiniestates.co.uk or give me a call on: 020 7112 8436.