Spotlight on Kensington and Chelsea
The Royal Borough of
Kensington and Chelsea is London's smallest borough and home to some of the world's most valuable real estate. With famous shopping streets, a rich cultural heritage and a dazzling array of high-end homes, it attracts buyers from across the globe. If you’re looking for a luxury property in the heart of the Capital, the Royal Borough of Kensington and Chelsea is the discerning choice.
Price adjustments keeping the property market buoyant
Initial uncertainty following last year’s Brexit vote and a fall in demand following Stamp Duty increases on high-value homes slowed the prime London property market. In the year to December 2016, Kensington and Chelsea property prices recorded a fall of 6.9%.[1] However, since June 2016 more realistic pricing has triggered a steady rise in the number of homes sold above £1m. In the traditionally quiet month of January, transaction volumes were up 14.6% on the previous year, suggesting the market has found its level and typical trading will resume.[2]
Bargains available to foreign investors
In addition to the price cuts, falls in sterling after the Brexit vote mean homes in London’s most expensive borough are now even cheaper for international buyers. In the year to December 2016, Knight Frank calculated that those paying in dollars were benefitting from an effective discount of 22%, with similar savings available to euro and renminbi buyers. While sterling remains low, estate agents across prime London expect to see continued interest from overseas buyers.[3]
Offering cultural life that’s second to none
Known as London's 'Museum Quarter', South Kensington has one of the world’s greatest concentrations of internationally-renowned cultural destinations. A celebration of Victorian grandeur, the Victoria & Albert Museum, the Science Museum and the Natural History Museum are all housed in architecturally stunning buildings. This prestigious neighbourhood is also home to The Royal College of Art, Imperial College, the Royal College of Music, the Royal Geographical Society and the Royal Albert Hall.[4]
The annual Chelsea Flower Show, Notting Hill Carnival and the BBC Proms – the world’s biggest classical musical festival – are just some of the highlights of the borough's social calendar. The Royal Borough is also home to some of the world’s most exclusive shopping districts: the iconic Portobello Road Market; designer shops of
Notting Hill in the north; famous department stores of Knightsbridge in the east; elegant boutiques and high-end stores along the King’s Road in the south.[5]
Densely populated and highly educated
With more than 13,000 people per square kilometre, Kensington and Chelsea is the country's most populous local authority. Its central location, proximity to the
City of London and elegant environment attracts corporate head offices, embassies and small businesses alike. The borough’s residents are some of the most highly-qualified anywhere in the country, with 52.7% of the population being educated to degree level or higher and 23.3% of the workforce being managers, directors or senior officials.[6]
Possible Elizabeth Line station in North Kensington
In the borough’s relatively less well-off area of North Kensington, Kensal Gasworks is due to be decommissioned by the National Grid later this year. The council is in talks with the site’s owners as it wants to create 4,500 new homes and use the developer’s fee to pay for a new Crossrail station that would transform the area. The proposed skip-stop station would provide around four services an hour linking into the main Crossrail line, reducing journey times to central London by 20 minutes.
If approved, the new Crossrail station would be a huge boost to local property prices. North Kensington is currently the most affordable area within the borough. According to Rightmove, the average price here is currently £722,000, whereas the average price in neighbouring Notting Hill is more than £1.4m.[7]
Crossrail 2 set to transform King’s Road in Chelsea
An extra 48 million people are estimated to use Chelsea’s hospitals, universities and cultural venues by 2030. That’s why the council is backing a new Crossrail 2 station on King’s Road in Chelsea. The new line would provide three-minute links to Clapham Junction with connections to Gatwick, and six-minute links to Tottenham Court Road with fast connections to Canary Wharf and Heathrow Airport.
If Crossrail 2 gets the green light from the Government, the new station would be discreetly built behind the façades of existing buildings with an underground ticket hall. A busy new terminus might, as some fear, change the village atmosphere of King’s Road. What’s undeniable is the effect it would also have on the value of Chelsea properties.[8]
Current asking prices and rental yields
The current average value of properties in the Royal Borough of Kensington and Chelsea is £2,142,225. It has increased 1.61% in the last 12 months and 43.92% in the last five years. For a
two-bedroom apartment, the average asking price is £1,417,678 and the average asking rent is £3,980pcm, which means the gross rental yield is currently 3.40%.[9]
This content is correct as of March 2017
