How do capital growth increases in Marylebone between W1U, W1H and W1G compare with each other – focussing on the last 7 months between January and July... its competition time!

Date Published 04 July 2016

Last week, we discussed the general Marylebone area in terms of its capital growth rates over the last 6 months, but this week following a series of requests, I have decided to split these results between some of the main Marylebone postcodes and essentially conduct a competition to find out which district has performed the best in this field. I had some very interesting feedback following last Monday`s article, where quite a few individuals (involved in the investment scene) were quite surprised at just how rapidly and continuously property prices in Marylebone were increasing. Although I had by and large proved Marylebone`s lucrative investment possibilities, one notable reader contacted me to ask where in particular did I think capital growth increases were the most concentrated on – in other words which Marylebone postcode offered the best capital growth rates. I assured this enthusiastic caller that most Marylebone capital growth increases over the last 7 months landed between the 7% - 8% mark and only minimal differences occurred between each respective area. Nonetheless, as we both agreed, with the lucrative sums involved in Central London property investment, these marginal variations could make fortunes of financial difference - both in the long, as well as the short run. Subsequently, I decided to analyse three of the main Marylebone postcodes – W1H, W1U and W1G – by putting them into a little friendly competition against one another, in order to determine which neighbourhood has performed the best in terms of its capital growth in not only the last 6 months, but also up to our current month of July. Although closely situated to one another and all forming a part of the Marylebone perimeter, these 3 districts are very diverse in terms of not only property and rental prices, but also their levels of tenant appeal, where there is a great differentiation in the services, attractions and amenities on offer in each area. W1G is commonly known as the Marylebone hospital district with its great array of hospitals, medical practices, surgeries, clinics, along with world-renown hotspots such as Harley Street and being the home to the very influential Howard De Walden Estate. In comparison, W1H features a greater proportion of residential housing and a great selection of different property types including Mews Houses, Town Houses, and Penthouses – along with Marylebone`s favourite flats; there are also some great sites to see here such as the nearby cultural as well as historical Edgware Road, the delightful Portman & Montagu squares and also featuring The Portman Estate`s headquarters. Lastly W1U, which shares the great variation of housing types that W1H possesses, with the addition of some standout neighbourhoods such as Chiltern Street – with its touristic Chiltern Firehouse, and the luxurious Bickenhall Street – with its standout mansion blocks; there are also a wonderful selection of shops and amenities featured along the shopping area of Baker Street, which is largely encompassed within this postcode. Back to the task at hand then, in order to compare the capital growth levels of these 3 Marylebone postcodes, I will be drawing upon 2 and 3 bedroom properties as my focus points, where I will be analysing their average property values along 6 different streets – 2 streets from each postcode. I will be inspecting the time frame from January to July 2016, from which I will be gathering up the average rises in price for each property type along their respective streets. Next up, I will be using these results to convey the level of capital growth increases, which have occurred in each neighbourhood - comparing these readings against the different model streets. Consequently, using my discoveries and my understanding of the demonstrated trends, I will also be predicting the values of these existing properties by the time we reach February 2017 – in other words, their forecasted capital growth rates for the next 7 months.

Changes in Property Prices in Marylebone from January to July (2016)
W1U area:

Dorset Street (W1U):

2 Bedroom Properties: Average Property Value in January: £1,447,705 - Average Property Value in July: £1,512,655 (Increase in worth= £64,950) – Capital growth over the last 7 months = 7.5% - Predicted Property Value by February 2017 (based on the current growth rate) = £1,577,605
3 Bedroom Properties: Average Property Value in January: £1,876,259 - Average Property Value in July: £1,958,250 (Increase in worth= £81,991) - Capital growth over the last 7 months = 7.4% - Predicted Property Value by February 2017 (based on the current growth rate) = £2,040,241

York Street (W1U):

2 Bedroom Properties: Average Property Value in January: £1,015,442 - Average Property Value in July: £1,061,000 (Increase in worth= £45,558) – Capital growth over the last 7 months = 7.5% - Predicted Property Value by February 2017 (based on the current growth rate) = £1,106,558
3 Bedroom Properties: Average Property Value in January: £1,499,325 - Average Property Value in July: £1,567,125 (Increase in worth= £67,800) - Capital growth over the last 7 months = 7.6% - Predicted Property Value by February 2017 (based on the current growth rate) = £1,634,925

W1H area:

Bryanston Place (W1H):
2 Bedroom Properties: Average Property Value in January: £1,181,617 - Average Property Value in July: £1,234,692 (Increase in worth= £53,075) – Capital growth over the last 7 months = 7.6% - Predicted Property Value by February 2017 (based on the current growth rate) = £1,287,767
3 Bedroom Properties: Average Property Value in January: £1,718,142 - Average Property Value in July: £1,795,300 (Increase in worth= £77,158) - Capital growth over the last 7 months = 7.6% - Predicted Property Value by February 2017 (based on the current growth rate) = £1,872,458

Crawford Street (W1H):

2 Bedroom Properties: Average Property Value in January: £1,267,123 - Average Property Value in July: £1,324,406 (Increase in worth= £57,283) – Capital growth over the last 7 months = 7.6% - Predicted Property Value by February 2017 (based on the current growth rate) = £1,381,689
3 Bedroom Properties: Average Property Value in January: £1,640,317 - Average Property Value in July: £1,715,272 (Increase in worth= £74,955) - Capital growth over the last 7 months = 7.7% - Predicted Property Value by February 2017 (based on the current growth rate) = £1,790,227

W1G area:

Wimpole Street (W1G):

2 Bedroom Properties: Average Property Value in January: £1,514,250 - Average Property Value in July: £1,583,083 (Increase in worth= £68,833) – Capital growth over the last 7 months = 7.6% - Predicted Property Value by February 2017 (based on the current growth rate) = £1,651,916
3 Bedroom Properties: Average Property Value in January: £2,022,717 - Average Property Value in July: £2,110,700 (Increase in worth= £87,983) - Capital growth over the last 7 months = 7.3% - Predicted Property Value by February 2017 (based on the current growth rate) = £2,198,683

Welbeck Street (W1G):

2 Bedroom Properties: Average Property Value in January: £1,581,789 - Average Property Value in July: £1,652,233 (Increase in worth= £71,444) – Capital growth over the last 7 months = 7.5% - Predicted Property Value by February 2017 (based on the current growth rate) = £1,722,677
3 Bedroom Properties: Average Property Value in January: £2,099,111 - Average Property Value in July: £2,191,111 (Increase in worth= £92,000) - Capital growth over the last 7 months = 7.4% - Predicted Property Value by February 2017 (based on the current growth rate) = £2,283,111
According to our collective results, Marylebone can certainly be viewed as a very healthy investment prospect, where property prices continue to increase at a great tempo and capital growth rates across all our three postcodes stand at between 7.3% - 7.7%. Taking a look at the average property values of our 2 bedroom properties, we can read that in January the average price within W1H stood at £1,224,370, while W1U displayed a slightly higher worth of £1,231,573, and W1G exceeded both with a much more expensive value of £1,548,019. Fast-forwarding by 7 months to July, W1H`s 2 bedroom property prices increased to £1,279,549 on average (a rise of £55,179), and W1U increased as a collective to £1,286,827 (improving by £56,254); however the undisputed winner in this department was W1G which saw its prices typically rise to £1,617,658 - an increase of £69,639! Considering 3 bedroom properties next, these residences achieved even greater rises in value across all three Marylebone postcodes during the same time frame, where for W1H the average stood at £1,679,229 in January but increased by £76,057 in July to £1,755,286. Moreover, W1U experienced a rise from £1,687,792 in January to £1,762,687 by July – an increase of £74,895, which demonstrates a slightly higher performance for their W1H rivals; but once again W1G steals the show with readings of an average £2,060,914 property worth in January, which increased to £2,150,905 by July – a massive rise of £89,991! The trends here also show us that in Marylebone over the last 7 months, more expensive properties rose by a higher amount than cheaper residences; W1G property prices started off higher in January than the other two neighbourhoods, and the proportional increase in value ended up higher as well. To analyse the growth rates in more detail then, I can tell you that although the specific rates of growth altered very slightly between our 3 Marylebone postcodes, the highest capital growth in the last 7 months for 2 bedroom properties can nonetheless be awarded to W1H with a growth rate of 7.6%; the lowest rate of growth (but very minimally) can be seen along W1U, which portrayed average readings in the region of 7.5%. With respect to 3 bedroom properties, W1H once again struts its stuff with the highest growth rate of 7.65%; whereas the lowest growth rate for 3 bedroom properties was actually W1G on this occasion with a slightly lower 7.35% average growth. In conclusion, we see that although W1G portrayed the highest property prices across both its 2 and 3 bedroom properties, it did in fact achieve the highest increases in value for each property type. This being said, the highest recorded growth rates were awarded to the W1H area for its 2 as well as 3 bedroom residences, but as the starting property values along W1G were noticeably more expensive, it achieved a higher proportional value for its growth rate. In addition, although W1U very slightly loomed behind its rivalling areas, it did nevertheless perform very well on the property market and great investment prospects can certainly be found here – so stay on the lookout!

In case you need further information regarding capital growth rates across any of our Marylebone postcodes, or even any specific streets you may have in mind, please inform me of your wishes and I will try to grant them as best and as quickly as possible. I can be reached by phone on 020 7112 8436 and via email at: max@oudiniestates.co.uk, I look forward to hearing from you all!