Logo

Camden named amongst top five property investment hotspots, but London prime property market remains hard to predict

PUBLISHED: 18:25 30 May 2017 | UPDATED: 19:06 30 May 2017

Kelly Street's bubblegum coloured parade makes for an attractive investment opportunity for buyers looking to take advantage of the 11.88 per cent property price increase by 2021

Kelly Street's bubblegum coloured parade makes for an attractive investment opportunity for buyers looking to take advantage of the 11.88 per cent property price increase by 2021

Archant

Barclays report names Camden as an investment hotspot for HNWIs for the next five years, with average house prices set to rise almost 34 per cent by 2021. But can we predict the result of next week let alone five years into the future?

Barclays predicts that Camden property prices will increase 33.90 per cent by 2021, 6.02 per cent annually Barclays predicts that Camden property prices will increase 33.90 per cent by 2021, 6.02 per cent annually

Camden is fourth in a list of property investment hotspots across the UK, with prices predicted to rise 33.9 per cent over the next five years.

The borough placed behind Richmond upon Thames, St Albans and Three Rivers.

The Barclays UK Property Predictor indicated prices would increase at a rate of 6.02 per cent a year..

London as a whole is predicted to see an average annual increase of 2.27 per cent, or 11.88 per cent by 2021.

As for the UK as a whole in the next five years, Barclays expects the average annual price increase to be 1.31 per cent a year, or 6.1 per cent by 2021.

The report estimated a nationwide price rise of 6.1 per cent by 2021, bringing the average property value to just shy of £300,000.

Average house prices are expected to rise to £290,714, up £16,714 from today’s average.

38 per cent of high net worth investors (HNWIs) anticipate a price hike in the north of the country, spurred on by high employment, increasing average earnings and promising business start-up rates outside the capital drawing entrepreneurs looking to make better profits than overhead heavy London.

Not often the focus of housing optimism, millennials are purportedly behind the predicted buoyancy of the investment market according to Barclays, that’s provided they have refrained from splurging on avocado toast and have a cash to splash.

Property made up 41 per cent of the portfolios of those surveyed, 18 per cent more than over 55s.

Younger HNWIs were also more optimistic, with 75 per cent aiming to increase the proportion of property in their portfolio by 2021. Just one in 10 over 55s said the same.

The bank of mum and dad is clearly paying dividends to well off property pundits who benefit from a plumper purse. Indeed, young HNWIs were more likely to own more than one property than their older counterparts.

The rental market is prime property for millennial investors, with 65 per cent of those looking to buy doing so in anticipation of rental rises.

23 per cent said they would use a buy-to-let mortgage to fund procurement, in contrast to just 7 per cent amongst older investors. Just under half (48 per cent) of their annual income was generated from rent.

Dena Brumpton, CEO, Wealth & Investments at Barclays, said: “It’s encouraging to see that property is still viewed as an important part of the investment portfolio with high net worth investors typically owning three properties and over a quarter planning to buy property because they believe that it offers long-term investment security.”

Camilla Dell, managing partner and founder of Black Brick Property Solutions is less encouraged. “I would say [this] is quite a simplistic way of looking at the market because the London property market is not homogenous; different parts of the market will behave and do very different things in the next five years,” she said.

“Savills are actually predicting Prime Central London growth of 21 per cent over the next five years cumulative, so quite a bit more than what Barclays’ price predictor is showing. Knight Frank are suggesting that east London will increase far more than more traditional west London and Prime Central London postcodes. So there’s quite a big discrepancy in their data.”

Unfortunately, the buying agent is also less convinced that Camden will perform better than elsewhere. “I’ve seen lots of research around HS2, Crossrail 2, east London because of all the technology companies investing there but I can’t say I’ve come across anything that says Camden is a hotspot,” says Dell.

Instead, Dell offers that the most growth will be seen in the market below £1 million outside Prime Central London. “That’s where we see the most growth happening over the next five years where we still continue to see supply and demand in balance and first time buyers competing with investors.”

Predicting the future in today’s turbulent market is quite the challenge given the number of known unknowns: Brexit and next week’s General Election to name but a few, and agents will no doubt be reluctant to put figures on future sales in a market which is already suffering the consequences of confusion and uncertainty.

“Most forecasts actually are predicting that London will flat line over the next two years because of uncertainty over Brexit,” said Dell.

“Actually, the market could fall in certain areas and certain price brackets if we suddenly see large numbers of people leaving the city. Potentially we might see price falls in certain parts of the market; that market between £2,000,000 to £5,000,000 is particularly vulnerable.”

Barclays’ report is the latest in a line of optimistic property reports which agents claim have no stake in the reality of a market encumbered by sluggish sales and slashed asking prices as a result.

“Sellers in the current market are having to cut their asking prices in order to get people in through the door,” explained Dell. “We see that more and more, particularly on properties priced from £2,000,000 upwards in central London. That’s been the part of the market that’s been the most susceptible to things like Stamp Duty increases.”

The very top end of the market is a “micro market” that operates independently and is less susceptible to political and economic fluctuations due to the availability of capital to buyers in the £20,000,000 plus market.

As for the future, Dell was cautious rather than pessimistic. “I think in the next two years there’s a lot of uncertainty because of Brexit which is likely to affect London more than any other market,” she said.

There is a silver lining to the great Brexit stormclouds brewing in Brussels, however. “Potentially that uncertainty brings opportunities for buyers because they can take advantage of that and that’s certainly what we’re doing at the moment for our clients.”

Property search


e.g. Oxford or NW3
Powered by Zoopla

Other Hampstead and Highgate property news

5 issues landlords should consider in 2018

2017 saw a number of changes made to regulations governing the private rented sector and a record number of government consultations held in relation to letting in the UK, meaning there is plenty for landlords to consider and act upon in the new year.

Three great properties for sale in Little Venice

Grand stucco-fronted houses and large Georgian and Victorian brick constructions line the wide streets of Little Venice, whilst charming mews houses can be found on the cobbled street of Bristol Gardens. For the ultimate canalside location nothing can beat a narrow boat.

Little Venice area guide: Canalside lifestyle, cafés and bars, shopping, property and more

Your guide to all the things to do in Little Venice, including the best restaurants, shops, pubs, schools and things to do by the canal. PLUS our guide to property in the area

New two and three-bedroom homes in Hampstead reflect Arts and Craft architecture of area

Thirty nine new two and three-bedroom homes, influenced by the Arts and Crafts architecture of the area, have been launched in Hampstead.

Comment: How to set the asking price for your property

Simon Gerrard, MD of north London estate agents, Martyn Gerrard, offers advice on pricing your house to achieve the best possible result

What you should know about inheriting property

There’s much to consider when inheriting property, writes Fiona Brandhorst

Camden area guide: Market, food & drink, entertainment, property and more

Your guide to all the things to do in Camden Town, including the best restaurants, shops, pubs, live music venues and Camden Lock Market. PLUS our guide to property in the area

Home of the week: Regency villa in picturesque Downshire Hill

Situated on the prized and picturesque Downshire Hill, this early 19th century Grade II-listed Regency villa is on the preferred south side of the road.

Comment: They call me the House Whisperer

Trevor Abrahmsohn, managing director of north London agents, Glentree Estates, writes about his special skills for closing a deal, which, he says, include “psychotherapy, extreme cajoling and applied salesmanship”. We’re intrigued...

How best to clear your unwanted junk

Richard Burr reveals how to clear your clutter.

Do it yourself! Great short and part-time courses in DIY, interior design, carpentry and more

With a whole new year stretching ahead of you, instead of making resolutions and not sticking to them, why not pick a fresh interest which will not only hold your attention, stimulate your creativity and keep your mind active, but improve your home, too.

What’s in store for the housing market in 2018 and how it will affect house prices, mortgages and first-time buyers

If you’re considering whether to move home this year, Ella Walker looks at potentially the main influences on house prices in London and further afield, and how they may affect buying and selling.

10 gardening trends set to blossom in 2018

These are the themes and plants predicted to dominate in the coming 12 months, writes Hannah Stephenson.

How to brick up a window like a pro

Being a brickie isn’t easy. Richard Burr reveals how to master the moves.

It’s time to get your home back in order after the festive season, but where do you dispose of your Christmas tree? We offer 3 recycling tips.

Festive season is in full flow, but soon it will be time to think about ditching the decorations and making more space for your home once again. But how should you dispose of your tree?

Comment: Stamp duty rises may be hitting more than just the property market

Are the stamp duty hikes doing more harm to the UK economy than just strangling the residential property market, asks Glentree Estates director Trevor Abrahmsohn

Landlord offers two-bedroom flat in King’s Cross to homeless for free over Christmas

Laurence Lameche, who now runs a property business but was formerly homeless himself, is looking for a single person, couple or family in need of somewhere to stay during the festive period

For sale: Highgate Mansion formerly home to Nobel Prize winner

An exceptionally restored Victorian mansion that was formerly home to a Nobel Prize winner is now on the market on Bishopswood Road, Highgate.

London design agency Studio Carver’s extensions in Belsize Park shortlisted for architecture awards

When Keith Carver, founder of design and architecture practice Studio Carver, was asked by a couple to help them realise a dream project for their retirement, he immediately saw the potential.

Average asking prices rise 19.2 per cent across borough of Camden

The borough of Camden bucked a trend of falling house prices across London in 2017, according to new statistics published by Rightmove.

How to insulate your own loft

Cold, isn’t it? The days have got shorter, summer feels a long way away, the sofa seems comfier - and the last thing you want to do is go outside and do more DIY (unless you absolutely have to).

Home of the week: Arts and Crafts style house in Hampstead

A spectacular interior designed Arts & Crafts style house, built circa 1905 for the artist Samuel Fry, a Royal Academy exhibitor

Alexandra Palace area guide: the hills, the houses and hunting for a bargain

Your guide to things to do in Alexandra Palace, including the best shops, cafes, restaurants and schools. PLUS our guide to property in N22

Comment: What’s in store for 2018?

Trevor Abrahmsohn, managing director of estate agents, Glentree International, offers his predictions for 2018 on everything from property to the World Cup

Primrose Hill family selling historic home after more than 60 Christmases

Originally constructed by renowned Victorian builder William Willett, the seven bedroom house, in Primrose Hill, is now on the market for £15,000,000

North London extensions shortlisted for top design award

Two north London extensions have been shortlisted as among London’s best and most innovative home improvements.

Three table setting themes to inspire you this Christmas

Gabrielle Fagan reveals how to create a Christmas table that’s a feast for the eyes

How to grow your own garlic

If you’re finding that shop-bought garlic doesn’t have the intense flavour you require, then it’s time to start growing your own, which will give you more choice and more flavour.

London house prices now a record 14.5 times higher than average income, figures show

Average house prices reached £496,000 and average earnings were £34,200 in London this year, yet a north London agent says the comparison is not an accurate representation of the capital’s property market

Decor experts Rockett St George reveal their recipe for stunning style

Jane Rockett Lucy St George share their vision for imaginative, inviting interiors with Gabrielle Fagan

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter

2018 © Archant Community Media Ltd

Terms and conditions | Cookie policy | Jobs at Archant