By Claudine Ang, Mar 27, 2012
In the second of her articles about buying property in London, Claudine Ang of London Prime Property Consultants looks at where to buy in the U.K. capital.Claudine Ang of London Prime Property Consultants is a lawyer by training and prior to her career in property, practised corporate law in London for six years in a magic circle law firm and in a U.S. law firm. Claudine has a dual degree in Law (Honours Class 1) and Economics from the University of Queensland. London Prime Property Consultants...
Buy prime London for wealth protection. Properties in prime central London provide the best opportunity for wealth protection and capital growth, as buyers have consistently demonstrated a willingness to pay to live close to good transport links and in areas with period architecture due to the desirability of its history, character and charm.
But why is prime central London so popular with buyers, both foreigners and locals?
When one thinks of London, visions of stunning architecture come to mind. From the Victorian terraces to the classic Georgian houses, the handsome garden squares surrounded by white stucco buildings, the quaint ancient pubs, and the magnificence and grandeur of buildings such as Buckingham Palace and the Royal Albert Hall, this is the landscape which is prime central London.
In addition to beautiful architecture, prime central London has good transport links, wide green spaces, interesting museums, great shopping, and some of the world’s best restaurants and leading universities. Think Harrods, Sloane Street, Portobello Road, Michelin starred restaurants, London Business School, the British Museum and Hyde Park. It is home to the Queen, the Prime Minister and Parliament.
London is an ancient city, developed over hundreds of years. It is a metropolis made up of little villages. When Londoners refer to prime central London, they mean areas such as Chelsea, Knightsbridge, Notting Hill, Mayfair, Belgravia and Marylebone. Prime central London is generally defined by low-rise period housing, which is consistently in demand. Period properties in premium areas typically retain their value, as reflected by the resilience of prices in prime central London during these austere economic times. Buyers, and indeed renters, have time and again demonstrated a willingness to pay a premium to live in areas with period architecture due to the desirability of its history, character and charm. The influx of investment into prime central London has been a flight to quality in a bid for wealth preservation and wealth creation, and good architecture in prime locations fulfils the quality requirement.
Note, however, that the desirability of streets within prime central London can change dramatically from one part to another and even from street to street. Decades of government policy has resulted in social housing mixed with private housing. In Notting Hill, a £10 million (S$20.01 million) house sits several streets away from a block of council flats. It is important when buying that you explore the area and understand its makeup. There is plenty of social diversity within all neighbourhoods in London.
If you prefer to buy something brand new, new builds within prime central London are an alternative. While not possessing the history and character of a period building, new builds offer the convenience of modernity whilst being surrounded by period architecture. But be prepared to pay high service charges if the building includes facilities such as a gym or a swimming pool.
A note of caution when purchasing a new build flat, especially when buying off the plan – be aware of how the developer or agent defines the location. What they tell you is prime central London might be very much outside the boundaries of central London.
Even though entry price points are higher in prime central London than many other parts of the city, as long as London is perceived to be a politically stable, mature and high performing financial market, prices in the long term will remain supported by the demand for, and the lack of supply of, stock in this tiny corner of the world.
