PCL: a unique opportunity
The Prime Central London market has always
offered unique opportunities to those willing
and able to invest. As the PCL market can be
more sensitive to political and financial
uncertainty, a deep understanding of its nuances
is essential. The 2019 market, as a result of
Brexit uncertainty, saw best-in-class and
best-in-price properties in strong demand, with
buyers benefitting from sellers adjusting prices
where needed.
Towards the end of the year, financial and
business service sector confidence began to
improve (PwC/CBI Financial Services Survey) and
the sterling strengthened. Accidental landlords
started putting properties back on the market
and, as a result, Foxtons exchanged 26% more
properties in Prime Central London in the second
half of the year compared to the first.
Demand for rental properties across Prime
Central London continued to build over 2019,
while the low levels of stock in the market
supported rental growth. Due to the uncertainty
in the sales market, many would-be buyers
decided to rent instead, and we saw an increase
in those looking to rent with an option of buying.
In line with this increased rental demand, rents
rose strongly, particularly for smaller properties.
In particular, we let 8% more studios in 2019
than in 2018 at a 5.3% higher level of rent.
Matching people and homes
Overseas buyers arriving in London for the first
time often have fixed preconceptions about
where they want to live - perhaps somewhere
recommended by a friend, or an area they know
from a film. But in reality, the property they
want, or can afford, might not be available there.
Building typology is a big factor in moving
people around London. Each Prime Central
London village has its own distinct character and
often an architectural vernacular dating back to
its Great Estate heritage. A buyer accustomed
to lateral living can struggle to adapt to life in
a tall, narrow Georgian or Regency townhouse.
They might begin their search in Knightsbridge
or Belgravia but end up in Holland Park,
Hampstead or Notting Hill. A few years ago,
plenty of homes in Knightsbridge sold for £2-3m
but today, £10m is closer to the norm; price
differentials open the mind to more areas too.
BY PRICE, 2019 SALES
BY £PSF, 2019 SALES
26%
INCREASE
IN FOXTONS' EXCHANGES
H2 2019 compared
to H1 2019.
£40,000,000Charles Street, W1J
£39,500,000One Hyde Park,
Knightsbridge, SW1X
£30,000,000Wilton Crescent, SW1X
£5,647Alexander Wharf,
London Dock, E1W
£4,817Clarges Mayfair,
Ashburton Place, W1J
£4,795Burlington Gate,
Cork Street, W1S
TOP TRANSACTIONS
7
bed
5
bed
3
bed
3
bed
3
bed
11
bed
LonRes 2019
PRIME CENTRAL
LONDON
SOLD
Source: Foxtons
Source:
LonRes 2019
18 The London Report | Prime Central London