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London laid bare – Land Registry data provides borough by borough price comparison
February 9, 2015Article by Charlotte Ashton
The latest data release by the Land Registry has provided a fascinating borough by borough snapshot of London’s property market. Across the capital the figures reveal a price rise of 16.3% in the past year, putting the average cost of a London home at £464,936.
Better than average
One of the areas to achieve better than average price rises during the year has been the leafy northwest borough of Harrow. The Land Registry data reveals an annual price change of 17.6% in Harrow, which is a borough popular with young professionals working in London due to its fast connection from London Marylebone, which takes just 12 minutes.
The uplift in Harrow property prices is a reflection of the positive economic movement that has been felt across the borough in the last 12 months. Buy-to-let property investors in particular have been charmed by the area, as Ray Withers, Chief Executive of Property Frontiers, explains,
“Harrow offers that winning combination of excellent potential for capital growth along with strong yields, so property investors have been paying it close attention over the past year. It’s very much an area on the up and demand for high quality accommodation there is intense, which is why developments like Carnegie House are so popular.”
Carnegie House is a modern conversion of an existing four storey commercial office building, which is being turned into luxury studio and one bedroom apartments, available on a 250 year lease. Prices range from £210,000 to £320,000, with up to 75% LTV mortgage finance available (£52,500 cash required). Gross yields are over 5%, with ROCE up to 7.5% if financing.
How does Harrow compare?
Harrow has outperformed comparable boroughs, according to the Land Registry data. The northern borough of Enfield, for example, saw an annual change in prices of 16.1%, just below the capital’s average. In East London, Havering saw an increase of just 15.6%, while Hillingdon in the west achieved 15.9%. In South London, the borough of Bexley achieved price rises of 16% over the year.
“While all London boroughs have their own unique charms,” continues Ray Withers, “Harrow is the one that stands out at the moment so far as property investment opportunities are concerned. The demand for high end rental accommodation is strong and supply is struggling to keep up, which creates an excellent environment in which to present luxury accommodation like that at Carnegie House.”