Marylebone is the top prime London area for property investors
09-14-2015
Chiltern Firehouse, Chiltern Street
Archant
Marylebone, Regent’s Park and St John’s Wood offer the best returns on rental investments for the most expensive London properties.
Research by estate agent Tunstall Property using Lonres figures found that rental yields achieved by property in Marylebone, described as the “trendiest area of prime central London” were 3.9 per cent on average.
The opening of the Chiltern Firehouse, alongside a number of new luxury developments in the area were cited as primary reasons for Marylebone’s popularity with renters.
Property in nearby St John’s Wood offered average yields of 3.6 per cent.
The research found that average rent in Marylebone was £890 per week, although the highest rent achieved was for a property on Upper Wimpole Street, which was let at £11,500 per week, or £598,000 for the year.
This is nearly three times the average weekly London rent of £322 but seems less noteworthy when compared with Mayfair, where the highest reported rent in London was paid for a £50,000 per week house (annual rent £2.6million).
The area was crowned as the number one destination for Ultra High Net Worth tenants, with average rent in this prime area averaging £1,500 per week.
However, despite having London’s most expensive rents, high property prices mean that the average rental yield in Mayfair is only 2 per cent.
Mark Tunstall, Managing Director of Tunstall Property, said: “Our research has found that, perhaps unsurprisingly, the “Golden Triangle” formed by the neighbourhoods of Mayfair, Belgravia and Knightsbridge command the highest rents, in very much the same way that they do in the sales market.
“Interestingly, in terms of prime rental investment areas, Marylebone comes out on top.
“It’s an area that not that long ago was perhaps overlooked but is now becoming a real prime destination for those looking to rent a good home in a great central location.”