Study rates London property most likely to increase despite Brexit uncertainty
Kensington and Chelsea is the best place in London to invest in property as Brexit fears continue to hit prices, according to a new analysis.
The study rates properties in the capital according to their ‘diamond’ investment status which looks at those most likely to increase in value and given a score of between one and 10.
The analysis by property investment portal One and Only Pro, found that 19% of properties in Kensington and Chelsea are rated as ‘diamond’ with an average price of over £1 million.
Whereas developers and investors would typically be looking for growth areas, the research shows that property is all about location. It is currently better to buy in the prime areas of London, as it offers investors better returns, terms of location and long term value.
In second place, with an average diamond property price tag of £520,669 was Hammersmith and Fulham, with 11%, followed by Westminster at 9% with an average £917,799 diamond property price.
This was followed by Barking and Dagenham, a potentially attractive option for investors with an average price of a diamond property in the area of only £367,716, then Camden, with 4% of properties offering a sound investment with an average diamond property price of £802,019.
‘We were expecting prime central London to do better than the rest of the London boroughs, as this area has already been discounted much more than the outer areas due to Brexit fears. We are seeing a high number of properties now at an attractive price and with weaker sterling this has been attracting foreign buyers back into this market,’ said Henri Sant-Cassia, chief executive of One and Only Pro.
‘Generally the £3million plus market may not be performing as well as other properties in London’s wealthier areas. But our data shows many properties around £1million to £2 million have underlying strength at this price range. They have bottomed out in terms of price and could even experience gains in the near future,’ he pointed out.
‘My other top location tips for buy to let investors at the lower end of the market would be Newham and Haringey. The diamond properties in these areas cost less than the average cost of a home in the UK at between £170,000 and £218,000,’ he added.