The prime property market in London involves huge figures, with many properties valued at many millions of pounds. The valuations can make it a challenge for investors to make high rental yields on properties, even when they can achieve impressive monthly rates.
Mayfair remains the most popular destination for ultra-high net worth tenants because of the fantastic location, the stunning properties and the prestige the addresses bring. The average weekly rent for the area is an astonishing £1,500. One property is even said to have been rented for an incredible £50,000 per week, meaning the rental income for the year is £2.6 million. Even with this the average rental yield is only around 2%, putting the area behind many other locations in the city.
Marylebone is regarded as a better area for investors looking for a bigger yield. The average rent in the area is smaller at £890 per week, reflecting the difference in the valuations of the properties in the two areas. The average yield though is 3.9%, nearly double that in the more prestigious Mayfair. This is much more attractive for investors, both for the bigger returns and the potential for higher demand.
Marylebone also has the benefit that it is not as well established in the prime market. For many years it was overlooked in favour of properties in the “Golden Triangle”; Mayfair, Belgravia and Knightsbridge. With prices in these areas at astonishing levels it is not surprising that the neighbouring Marylebone has become a focus for investors because it offers a similar great location and the chance to make bigger returns.
Property investors need to consider the area they are purchasing properties in very carefully, especially if they are planning on renting them out. At Finefair we can offer advice and guidance to help people looking to do just that. We have great knowledge of the market having been based in the city for many years. We are committed to supporting our clients and helping them to achieve their investment goals. We deal with property management, investments and council leasing in Kensington and Chelsea, Westminster and all other areas of the capital.
