Date Published 05 September 2016
Recently, quite an interesting pattern has emerged regarding the property investment enquires that I have been receiving, and much of that curiosity has been concentrated along the different NW1 sectors of not only Marylebone, but also Regent's Park and even further up towards Camden Town. Although interest surrounding the NW1 area has been wide and varied, one piece of particularly concrete interest arose from a businessman currently working in the IT sector, who was looking to invest some of his hard-earned income in the lucrative London property market. He had been closely following the property news for the NW1 area – with notable interest to the Marylebone borders and 2 as well as 3 bedroom homes. But with this perimeter being so vast and incorporating a wide number of neighbourhoods, he wanted to know if Marylebone's NW1 was the best investment choice, or whether he would be better off heading eastwards and upstream towards areas such as Regent's Park and Camden Town. I told him that Marylebone is generally considered as one of the most promising investment locations in London at the moment and is very much on the rise; the fact that he was considering the NW1 section also meant that he would be avoiding the more premium priced Marylebone postcodes such as W1G, whilst still acquiring a stake in this prestigious neighbourhood. In addition, I explained to this gentleman that NW1's prominent features don't simply stop at more cost-effective properties, but this specific spot also includes the main Marylebone tube and rail stations, and is home to some key landmarks such as: ‘The Sherlock Holmes Museum', ‘London's Business School' and the pleasant greenery's of Dorset Square and Broadley Street Gardens. However, the other areas in question - starting with Regent's Park, also hold their own enticing prospects, where this NW1 sector incorporates some of the most sought-after properties in London, with its incredible 482 acres of greenery – which almost seem like communal gardens to the residents here; there is no wonder that this area has drawn a great list of A-list celebrity stars, along with some of the most prosperous individuals. For centuries this location has been a sign of wealth along with good fortune, and the general trend you can encounter here is that with regards to property prices, the closer you are to the main park and specifically the Outer Circle, the more premium the valuation of the residences. Conversely, the further you venture east from the Outer Circle, you will find an astonishing reduction in the cost of housing and a significant difference in your buy-to-let investment prospects. Turning our attentions to Camden Town next, this intriguing district is well-known for its entertainment services – often hosting street markets, music venues and concerts, as well as being a main-base for alternative culture. Demand for properties in Camden remains very strong with not only increasing numbers of foreign buyers being lured into the Camden hype, but interest is high from City and West End professionals, as well as the usual buy-to-let investors looking for profitable deals. Now that we've briefly whisked through these areas' main characteristics and pulling factors, let's get back to scrutinizing these NW1 districts in terms of their investment capabilities. To begin, I will be examining a long list of my client's preferred 2 and 3 bedroom residences, checking out all our three chosen NW1 perimeters – Marylebone, Regent's Park and Camden Town. I will be selecting two streets from each area – for a fair and varied study, where I shall be bringing together the values of 2 and 3 bedroom properties that are encompassed within these districts, and using the gathered figures to form an average estimation for each street. I will then be evaluating other key investment indicators such as the average rental values for these homes, the capital growth rates of the last 10 years, as well as the type of predicted rental yields that we should be expecting following a potential investment here.
Property investment in the NW1 perimeters of Marylebone, Regent's Park and Camden Town:
Marylebone (NW1):
Boston Place – (NW1 6EX, NW1 6ER):
2 bedroom properties: Average Property Value: £1,151,666 - Average Rental Value: £3,650 (pcm) – Predicted Rental Yield= 3.80% - Average Purchase Price in 2006: £440,000 - Capital Growth over the last 10 years (2006 – 2016) = 97%
3 bedroom properties: Average Property Value: £1,681,555 - Average Rental Value: £5,250 (pcm) – Predicted Rental Yield= 3.74% - Average Purchase Price in 2006: £595,000 - Capital Growth over the last 10 years (2006 – 2016) = 104%
Harewood Avenue - (NW1 6LE, NW1 6JX, NW1 6NU):
2 bedroom properties: Average Property Value: £1,115,846 - Average Rental Value: £4,100 (pcm) – Predicted Rental Yield= 4.40% - Average Purchase Price in 2006: £485,000 - Capital Growth over the last 10 years (2006 – 2016) = 84%
3 bedroom properties: Average Property Value: £1,456,388 - Average Rental Value: £5,400 (pcm) – Predicted Rental Yield= 4.44% - Average Purchase Price in 2006: £581,000 - Capital Growth over the last 10 years (2006 – 2016) = 92%
Regent's Park (NW1):
Cumberland Terrace – (NW1 4HP, NW1 4HS, NW1 4HJ):
2 bedroom properties: Average Property Value: £2,242,750 - Average Rental Value: £7,850 (pcm) – Predicted Rental Yield= 4.20% - Average Purchase Price in 2006: £840,000 - Capital Growth over the last 10 years (2006 – 2016) = 99%
3 bedroom properties: Average Property Value: £3,212,200 - Average Rental Value: £10,900 (pcm) – Predicted Rental Yield= 4.07% - Average Purchase Price in 2006: £1,160,000 - Capital Growth over the last 10 years (2006 – 2016) = 102%
Redhill Street – (NW1 4BG, NW1 4AS, NW1 4DQ):
2 bedroom properties: Average Property Value: £1,022,135 - Average Rental Value: £3,350 (pcm) – Predicted Rental Yield= 3.93% - Average Purchase Price in 2006: £470,000 - Capital Growth over the last 10 years (2006 – 2016) = 78%
3 bedroom properties: Average Property Value: £1,768,750 - Average Rental Value: £5,450 (pcm) – Predicted Rental Yield= 3.69% - Average Purchase Price in 2006: £800,000 - Capital Growth over the last 10 years (2006 – 2016) = 80%
Camden Town (NW1):
Delancey Street - (NW1 7RX, NW1 7NH, NW1 7RY):
2 bedroom properties: Average Property Value: £923,384 - Average Rental Value: £3,250 (pcm) – Predicted Rental Yield= 4.22% - Average Purchase Price in 2006: £460,000 - Capital Growth over the last 10 years (2006 – 2016) = 70%
3 bedroom properties: Average Property Value: £1,615,000 - Average Rental Value: £5,500 (pcm) – Predicted Rental Yield= 4.08% - Average Purchase Price in 2006: £785,000 - Capital Growth over the last 10 years (2006 – 2016) = 72%
Jamestown Road - (NW1 7BY, NW1 7DB, NW1 7BW):
2 bedroom properties: Average Property Value: £1,054,750 - Average Rental Value: £3,650 (pcm) – Predicted Rental Yield= 4.15% - Average Purchase Price in 2006: £520,500 - Capital Growth over the last 10 years (2006 – 2016) = 71%
3 bedroom properties: Average Property Value: £1,743,083 - Average Rental Value: £6,050 (pcm) – Predicted Rental Yield= 4.16% - Average Purchase Price in 2006: £840,000 - Capital Growth over the last 10 years (2006 – 2016) = 73%
From our results, we can see that all three of our chosen NW1 neighbourhoods demonstrate some very promising investment potential, where Marylebone, Regent's Park, as well as Camden Town all portray attractive financial figures across the board, rivalling each other closely with regards to each investment indicator. Starting off with our average property value findings, 2 bedroom properties across all of our three NW1 perimeters come to an average figure of £1,251,755, whilst 3 bedroom properties weigh up at a combined average of £1,912,829. The most cost-effective 2 bedroom properties can be found within Camden Town, where Delancey Street and Jamestown Road join together to give us a reliable median valuation of £989,067; the most expensive 2 bedroom properties however are shown to be in Regent's Park, which come to an approximate average of £1,632,442. With the larger 3 bedroom properties, you will notice that it is in fact Marylebone's NW1 with the most financially luring prices, which stand at an average £1,568,971; nonetheless the values continue to tower with Regent's Park for 3 bedroom residences too, with an average price tag available here at £2,490,475. Moving onto the rental analysis, according to our findings the average rental worth of a 2 bedroom property (taking all our NW1 areas into account) arrives at £4,308 (pcm); on the other hand, 3 bedroom residences display an average rental prediction of £6,425 (pcm). The properties with the most rental capabilities can be found within the borders of Regent's Park, where both 2 and 3 bedroom properties are able to request the largest rental prices, whilst Marylebone is the second most efficient in this department for 2 bedroom properties, and Camden Town rakes in second place for their 3 bedroom property showcase. Nonetheless, the biggest rental prices don't always mean the most investable properties, for the rental yield shows us the overall relationship between money spent to acquire a property and the buy-to-let income that it's expected to generate. This principle is demonstrated here, where although Regent's Park possessed the highest rental values, it actually generates the lowest rental yield of 4.06% for 2 bedroom properties and 3.88% for 3 bedroom properties. More optimistically, Camden Town reached the highest 2 and 3 bedroom readings at 4.18% for the former and 4.12% for the latter, whereas Marylebone narrowly lurked behind with an average reading of 4.10% for its 2 bedroom homes and a faintly lower 4.09% for the larger 3 bedrooms. Finally to discuss our capital growth statistics, in overall 2 bedroom properties across our three NW1 areas have experienced growth levels of 83.16% over the last 10 years, and 3 bedroom homes have in the same 10 year period grew by an even more effective 87.16%. The NW1 perimeter which experienced the highest level of growth was our home team Marylebone, with a combined total of 94.25% for both its 2 and 3 bedroom homes, Regent's Park also performed amicably with both its property types joining together for a growth of 89.75%, whereas Camden Town slightly underperformed with an average growth of 71.50%. To finish off, although Regent's Park displayed the most expensive properties and the highest rental prices, we can clearly see that Marylebone and Camden are the front runners in this three-horse race. Whilst Camden may have narrowly beaten Marylebone to the rental yield podium and had slightly more cost-effective prices for its 2 bedroom properties, Marylebone had a significantly better capital growth rate for the last 10 years, and actually had more competitive prices for its 3 bedroom properties. One thing is for sure, both these areas offer a fantastic selection of investable properties, where potential deals should be analysed on an individual basis, and if the price and investment prospects are right, then there is not much reason why a willing investor shouldn't input their hard-earned capital and watch their profits soar!
To wrap up, I'd also like to remind you that if you'd like to find out any more about the NW1 property scene, whether your interest takes you to our speciality area of Marylebone, or even if you'd like some advice with regards to investment prospects situated within Regent's Park or Camden, don't hesitate to get in touch! NW1, as we have witnessed in this article, covers a very wide perimeter, which encompasses a huge number of not only 2 and 3 bedroom properties, but studio's, 1 bedroom homes and even the larger 4 and 5 bedroom residences. Should you encounter any property that catches your eye, I'll gladly inspect its expected investment prospects and provide you with my personal outlook.
