Date Published 04 April 2016
Wow did we have a lot of enquiries regarding last week's article on the Howard De Walden Estate, many investors were amazed at just how much impact a seemingly unattached property giant could have on their own fortunes in the market. A number of clients asked me whether the Portman Estate, another group which is commonly held to rival the fortunes of the Howard De Walden Estate most closely, also held such a vital effect in the Marylebone property market. Well I can tell you that the Portman Estate prides itself on working closely with the community and regularly seeks to develop direct partnerships with local groups, charities, high profile landlords as well as their supply chain. Firstly a little more about this important company, the Portman Estate has a long family heritage with the foundations of their business built upon it, where they have owned and managed the land that forms their estate for over 400 years – and I'm sure they will carry on to do so far along into the future! Right in the midst of this glorious estate, sits 110 acres of Central London properties, which are situated between Edgware Road and Oxford Street – extending north towards Marylebone Road and East into Marylebone High Street.
Encompassed within the Portman Estate is a blend of residential and retail properties, with office space facilities also available - there is a unique mix of short and long term investments as well as historical and contemporary homes. To elaborate, with historical properties, this group has worked effectively and responsibly to ensure the upholding of and restoration of many Georgian buildings to standards required of modern living; they have allowed for Marylebone to keep its proud heritage, but also move forward with the forever expanding London. A great example of this is with the Chiltern Firehouse, which is one of the crown jewels of the Portman Estate, where much of the fire station's original architectural features have been kept, but nonetheless it has been developed to a very popular 5 star hotel. They also bought the area in which Chiltern Firehouse resides within – Chiltern Street in 2009, since then they have invested £700,000 here, transforming it into a vibrant shopping destination that has even been branded ‘London's coolest street' by Conde Nast Traveller. This investment, which extends to over 12 million in regenerating the Portman Village, not only benefits the Estate itself, but landlords with properties in close proximity have also seen their residences' area boosted with greater attention being attracted to their own properties as a result. With reviews of such a high standard as a consequence of the Portman Estate's great influence, many landlords have seen an increased flow of potential tenants interested in their nearby properties. This balance also continues with contemporary plans, where the Portman Estate has attracted many independent restaurants and retailers, especially in the Portman Village – strongly developing Seymour Place, New Quebec Street and Chiltern Street. These plans again aid the area as a whole, including those with properties already in close proximity, or for potential investors looking to purchase flats or houses nearby - for as the area becomes more enriched, so do the price tags of these properties and the rental values along with them!
In order to further express the great importance of the Portman Estate to these clients of mine, who expressed such an interest towards the group, as well as my important blog readers, I composed a financial analysis of a couple of streets which make up this illustrious Estate. The Streets I decided upon directly benefit from the Portman Estate's influence and the nearby proximity of their head office. I will be portraying the property values of 2 and 3 bedroom flats in Chiltern Street, Great Cumberland Place and Seymour Place, as well as expressing the rental values that are currently being achieved with these properties along with the yields that an investment here can generate. I would like to show you all how an investment in the Portman Estate area makes great financial sense and would ensure a share in success with this valuable group. As the fortunes of the Portman Estate undoubtedly increase and is spread out to the community, you and your nearby property investment will also directly profit as a result.
Chiltern Street (W1U):
2 bedroom flats: Average Property Value: £1,584,214 - Average Rental Value: £5,024 (pcm) - Prospective Rental Yield= 3.80%
3 bedroom flats: Average Property Value: £2,164,623 – Average Rental Value: £6,484 (pcm) - Prospective Rental Yield= 3.59%
Great Cumberland Place (W1H):
2 bedroom flats: Average Property Value: £1,146,538 - Average Rental Value: £3,863 (pcm) Prospective Rental Yield= 4.04%
3 bedroom flats: Average Property Value: £1,643,428 - Average Rental Value: £5,650 (pcm) Prospective Rental Yield= 4.12%
Seymour Place (W1H):
2 bedroom flats: Average Property Value: £1,047,923 - Average Rental Value: -£3,500 (pcm) Prospective Rental Yield= 4%
3 bedroom flats: Average Property Value: £1,585,750 - Average Rental Value: £5,353 (pcm) - Prospective Rental Yield = 4.05%
From these financial figures, we can see that properties within the Portman Estate area generate a very good account of investment potential. We see that on average 2 bedroom properties within the estate (using our 3 streets as our illustrations), have a valuation of around £1,259,558, and 3 bedroom properties in the same perimeter are approximately worth £1,797,933 on average. The highest of these property prices (from our chosen examples) derives from Chiltern Street, where we can directly see the influence of the Portman Estate's work that we have already pointed out. Recent high injections of investment, shopping attractions and being dubbed a tourist hotspot has seen property prices increase higher than neighbouring streets and certainly above the Marylebone average – a property investment here undoubtedly would be ideal! In addition, predicted rental yields are shown to possess great potential amongst these streets in the Portman Estate - with an average of 3.94% for 2 bedroom flats, and a 4.02% average rental yield for 3 bedroom flats. These superb rental yields are high indicators of the Portman Estate's great influence upon the Marylebone market, where their presence as well as their great efforts in enhancing the perimeter, has allowed properties here to be one of the most investable in the market. I believe a property investment within the Portman Estate area would make for a very business-minded, intelligent move and one that could prove financial dividends for your future!
Should this article take your interest towards the Portman Estate further, and as a result you would like to enquire about the properties in this area, please don't hesitate to contact me. I am more than happy to talk you through your options and give you a more detailed account specific to your circumstances.