Date Published 27 June 2016
Recently, I have been receiving quite a few like-minded queries, which have frequently centred over the topic of capital growth – but interestingly property investors have become more intrigued in short term capital growth, as well as the usual long term growth rates that I regularly discuss in my weekly articles. One of these inspiring investors, who has been in contact with me recently, asked me whether there has been any noteworthy growth in the last 6 months of 2016 – from January to our current month of June in and around Marylebone. I informed him that with Marylebone, capital growth rates differ to varying degrees depending on certain areas and streets, but I could provide him with the outlook that generally 2 and 3 bedroom properties have increased between 6% – 7% in the last 6 months. To explain further, larger increases in property values are usually attributed in proportion to the initial worth of the property – meaning that more expensive properties often gain a higher increase in value than cheaper properties. In addition, I can also tell you that growth trends in Marylebone (generally over the last 6 months) have increased by around £30,000 - £55,000 for 2 bedroom properties depending on the street and the size of the residence, and between £40,000 - £70,000 for 3 bedroom residences – depending on these alike circumstances. Along with growth rates over the last 6 months, this investor also requested that I provide him with some predictions for the rest of the year, using current trends to create a realistic and viable investment forecast – demonstrating just how investable Marylebone can be (in terms of capital growth rates) – even in the short run. In order to carry out this investigation, I will be using 2 and 3 bedroom properties as my models, where I will be analysing their average property values along 5 different streets - from January to June and the average rises in price for each property type along their respective streets. Resultantly, I will also be using these readings to portray the level of capital growth increases, which have occurred in each neighbourhood, and be comparing these readings against the different example streets. Then based upon my results and the demonstrated trends, I will also be predicting the values of these same properties by the time we reach December – their forecasted capital growth for the next 6 months.
Changes in Property Prices in Marylebone from January to June (2016)
Upper Berkeley Street (W1H):
2 Bedroom Properties: Average Property Value in January: £1,350,578 - Average Property Value in June: £1,393,250 (Increase in worth= £42,672) – Capital growth over the last 6 months = 6.2% - Predicted Property Value by December (based on the current growth rate) = £1,435,922
3 Bedroom Properties: Average Property Value in January: £1,797,383 - Average Property Value in June: £1,854,333 (Increase in worth= £56,950) - Capital growth over the last 6 months = 6.3% - Predicted Property Value by December (based on the current growth rate) = £1,911,283
Seymour Place (W1H):
2 Bedroom Properties: Average Property Value in January: £1,280,433 - Average Property Value in June: £1,324,833 (Increase in worth= £44,400) – Capital growth over the last 6 months = 6.8% - Predicted Property Value by December (based on the current growth rate) = £1,369,233
3 Bedroom Properties: Average Property Value in January: £1,712,283 - Average Property Value in June: £1,772,083 (Increase in worth= £59,800) – Capital growth over the last 6 months = 6.9% - Predicted Property Value by December (based on the current growth rate) = £1,831,883
Baker Street (W1U):
2 Bedroom Properties: Average Property Value in January: £1,292,650 - Average Property Value in June: £1,338,600 – (Increase in worth= £45,950) Capital growth over the last 6 months = 7% - Predicted Property Value by December (based on the current growth rate) = £1,384,550
3 Bedroom Properties: Average Property Value in January: £1,713,111 - Average Property Value in June: £1,773,111 (Increase in worth= £60,000) – Capital growth over the last 6 months = 6.9% - Predicted Property Value by December (based on the current growth rate) = £1,833,111
Bickenhall Street (W1U):
2 Bedroom Properties: Average Property Value in January: £1,582,383 - Average Property Value in
June: £1,637,583 (Increase in worth= £55,200) – Capital growth over the last 6 months = 6.9% - Predicted Property Value by December (based on the current growth rate) = £1,692,783
3 Bedroom Properties: Average Property Value in January: £2,314,100 - Average Property Value in June: £2,393,200 (Increase in worth= £79,100– Capital growth over the last 6 months = 6.7% Predicted Property Value by December (based on the current growth rate) = £2,472,300
Bell Street (NW1):
2 Bedroom Properties: Average Property Value in January: £980,950, - Average Property Value in June: £1,015,300 (Increase in worth= £34,350) – Capital growth over the last 6 months = 6.9% Predicted Property Value by December (based on the current growth rate) = £1,049,650
3 Bedroom Properties: Average Property Value in January: £1,500,185 - Average Property Value in June: £1,552,285 (Increase in worth= £52,100) – Capital growth over the last 6 months = 6.8% Predicted Property Value by December (based on the current growth rate) = £1,604,385
After gathering up our results, we can see that in the last 6 months property prices have unanimously been on the rise in Marylebone, with some very strong figures being portrayed; growth rates from our selection of streets show a minimal increase of at least 6.2% and a maximum rise up to around 7%. If we inspect the average property values of our assortment of 2 bedroom properties in Marylebone, we can notice that in January the average price came to around £1,297,398, which by June had a fantastic average increase in value of approximately £44,514, bringing the new median property value to £1,341,912. So essentially, these sort of properties, merely by remaining in their respected Marylebone positions for a period of 6 months (without any particularly renovations or works of note), would have bagged you a large sum of money placed upon your already budding investment – oh, the beauty of property buying in Central London! Furthermore, 3 bedroom properties, being larger and of a greater initial worth, performed even more admirably in terms of their increase in property value, where in January the average worth stood at £1,807,412, but by June this had already increased significantly by an estimated median of £61,590 - to its new figure of £1,869,002! Regarding the capital growth readings, we see that our chosen Marylebone streets (for both 2 as well as 3 bedroom properties) do in fact fall into the predicted Marylebone growth rates that I outlined at the start of the article, with the last 6 months expressing capital growth rates between 6.2% - 7% across all our example streets. For 2 bedroom properties, the average capital growth rate for the last 6 months stands at around 6.76%, whereas 3 bedroom properties during the same time frame can be placed at the minimally lower, but almost symmetrical 6.72% mark. The highest overall street for capital growth, for the period of time between January and June this year, although by slight margins, Baker Street (W1U) expressed the most investment potential with a 7% average growth for 2 bedroom properties, and a 6.9% growth rate for their 3 bedroom counterparts. Honestly, I believe that the capital growth rates circling around Marylebone properties are financially lucrative at the moment, with property prices increasing dramatically each year – realistically the smartest move you can make in the current market (should your finances allow you to do so) is to invest in a Marylebone property much sooner rather than later. Judging by the high growth rates at present, personally I'd much rather be on the side of the investors with properties already secured in the Marylebone area, who are stacking up their property prices with each passing month, rather than potential investors still weighing up their options and deciding whether to invest or not. As, although it is important to find the correct investment opportunity - the longer you take to choose your investment prospect, the higher the property prices become!
If these fantastic growth rates have particularly caught your eye and you wish to discuss some of these figures with some further conversation, please don't hesitate to contact me and I will do my best to clarify, as well as expand upon, this topic of rapidly increasing property values in Marylebone. In addition, you are welcome to bring forward any investment opportunities you may currently be thinking about and I would gladly provide you with an analysis of property growth in that particular neighbourhood, over the last 6 months or for whichever period of time you desire.
