If you are in the market for luxury central London property and enjoy celebrity-spotting, Regents Park might just fit the bill. Home to famous individuals like Damien Hirst and Kate Moss as well as Russian oligarchs and royals from the Middle East, this cosmopolitan neighbourhood, with its white-stuccoed Nash terraces, access to premium shopping, world class entertainment and extensive parkland, is a desirable place to live.

Set back along tree lined avenues, many of the grand terraced properties have retained their original features both inside and out. For properties with park views, a Regent’s Park villa is an excellent alternative. That’s if you are lucky enough to spot one on the market - over a third have been with the same family for decades.

With property values slated to rise, Regents Park property is rightly considered “super-prime” and appeals to individuals eager to live in a picturesque, elegant part of the capital. As Martin Bikhit, managing director of Kay&Co says “In our experience, Regent’s Park has become home to a certain type of buyer who eschews the glitz of Mayfair and Belgravia for a more refined area.”

We have some lovely properties for sale in NW1 so if you fancy a home in this fashionable London district, call us right away to schedule viewings.

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Coverage details

Date: 23 September 2016
Publication name: City A.M.
Type: UK/Online

London's inner circle of super prime property

The renaissance of Regent's Park

It is hard to believe that Regent’s Park was not always the height of fashion, despite its famous Nash terraces overlooking more than 400 acres of parkland. As recently as 10 years ago, while London’s elite favoured Belgravia and Mayfair, Regent’s Park fell out of fashion, with few high-pro le residents and properties emblematic of an earlier time. Many of its imposing Nash-designed houses had been converted into apartments or of ce space as residential leases capped at 60 years limited their appeal.

This report charts the return of this part of London to its former pre-eminence as high-end developers converted of ces back to residential and apartments back into substantial homes. Today there are a smaller number of much larger homes in Regent’s Park. Limited supply underwrites their exclusive appeal but discreet external facades retaining the Nash design belie the increasingly lavish interiors favoured by the global super-rich residents choosing to live in the NW1 4 post code.

Methodology

In this report we’ve analysed data on 1600 dwellings within the Regent’s Park area (NW1 4) with over 3,000 residents. In addition to Land Registry and LonRes data for transactions and price movements over 10 years, we have drawn on planning records and EGi for development history and used Census and MOSAIC for lifestyle data.

Regent's Park decade of change

Ten years ago, few properties came to the market in Regent’s Park and there had been hardly any new construction activity. Only 14 homes (all ats) were developed within the Regent’s Park postcode (NW1 4) between 2000 and 2005. However, when demand for luxury homes burgeoned across a widening prime central London, attention turned to the Nash properties in Regent’s Park and a wave of conversions began from ats or of ces into substantial family homes.

Low supply and rising demand

As properties were restored to their former glory, the number of ats declined, causing a net loss of stock. Census gures showed a 13.4% reduction in dwellings in Regent’s Park between 2001 and 2011. As a result, detached and semi-detached houses now make up 7.4% of the housing stock, compared with 4.2% in 2001. In other words, by the end of the decade, Regent’s Park had a smaller number of much larger homes. While the number of dwellings decreased, the level of interest in the area rose and its growing popularity was re ected in sales and lettings volumes. In 2006, transactions in and around Regent’s Park comprised 4.8% of all sales and 3.5% of lettings across prime central London. By 2014, 6.7% of all sales were in the Regent’s Park area, while lettings peaked in 2015 at 6.1% of all lets. Consequently, renewed popularity in the area caused prices to rise faster than the rest of prime central London, itself experiencing an upsurge in prices.

Developers set up

The combination of luxury product and limited stock attracted more interest from developers and af uent homeowners. The development of Cornwall Terrace by Oakmayne Properties in 2010 has been a turning point. The former HQ of property company British Land, located on Cornwall Terrace, was converted into eight exceptional luxury homes, ranging from 8,000 to 14,400 square feet. Sales achieved prices of between £26 and £45 million, setting a new benchmark for the area. Current developments will continue the trend of conversions back to residential. For instance, The Park Crescent, currently under construction and due for completion in 2018, is already commanding prices of £3,000 per square foot and more. Planning permission has also been granted for a further scheme on Park Crescent with 76 apartments.

House prices ripple across the park

The uplift has not been con ned to the Nash terraces. The whole area has acquired a new air, encouraging more development of large scale apartments in the immediate vicinity and a ripple effect over a wider area. This can be seen in the development data and also in price analysis of the NW1 4 and neighbouring postcodes illustrated in the map. In 2013, on the border of Regent’s Park, 27 new apartments, built to a very high speci cation and including a 3,218 square foot penthouse, were completed at The Atrium on Park Road (NW8). Prices there averaged over £2,000 per square foot (psf). Looking at the past 10 years – an extraordinarily strong market – price growth around Regents Park exceeded that achieved in wider prime central London. Values in and around the Park have risen by 123% since 2006, outperforming the 105% growth seen across prime central London as a whole.

As apartments have been amalgamated into houses and with the development of substantial mansions, the average size of properties in the Park has increased. The average size of properties sold since 2011 is some 22% larger than in the preceding five years.

The new regent's Park resident

The area around Regent’s Park began to change signi cantly around 2006 as this analysis of Census data between 2001 and 2011 demonstrates. The number of households living in the Park fell by 15% between the two census dates – even though the development and sales market was increasingly active.

The decline in the total number of households is almost certainly a re ection of the change in the nature of the stock as apartments were converted back into single houses. Although single-person households still accounted for 40% of all households in 2011, their share of the total had declined by 26% over the preceding decade.

Meanwhile the proportion of family households began to rise. Almost a quarter of households in 2011 had either dependent or non-dependent children, up from 21% in 2001. Living in one of London’s most beautiful parks makes this an attractive location for family life as well as the close proximity of the famous Regent’s Park Zoo and Open Air Theatre. There are also a number of leading independent schools nearby.

Within the con nes of the Park, and built on the site of one of the original eight villas, is the main campus of one of the UK’s only independent universities, Regent’s University, which attracts some 4,500 students from across the globe. This adds to the attraction for the parents of af uent, often international students for the period of their children’s studies.

Celebrity Residents

Regent’s Park residents include successful creatives like Damien Hirst, entrepreneurs like Christian Candy, Middle Eastern Royalty (Qatar’s rst lady, Sheikha Mozah bint Nasser Al Missned) and Russian oligarchs (Andrey Goncharenko, who bought Hanover Lodge, a Grade II*- listed Regency mansion for £120 million in 2014).

This prestigious 4,000 square foot Marylebone penthouse in Harley House (a Grade II listed refurbished Edwardian mansion) is currently on the London market for £8.95 million. In the words of Martin Bikhit, Managing Director of Kay & Co,“The penthouse, with its stunning views and double-height ceilings creates the perfect setting for a buyer who enjoys regular entertaining.”

Best known as Mick Jagger’s 1966 rented home, the well-lit Marylebone apartment is spacious, beautifully furnished and affords glorious views of nearby Regent’s Park. Six bedrooms, three and a half bathrooms, a reception room and dining room with a restored fireplace, “corona”-style chandelier and French windows makes this fifth floor residence ideal for stylish living.

Dine alfresco on the 575 square feet terrace or unwind on the Juliet style balcony. This Marylebone property comes with two dedicated parking spaces, round the clock security, porterage and a concierge service. With electronically operated entrance gates and a secure carriage driveway your privacy and safety is assured.

To arrange a viewing of this stunning Marylebone penthouse give us a call. For information about other properties for sale in Marylebone browse through our portfolio of real estate.

Located atop a sought-after Fitzrovia apartment complex on Bolsover Street, this magnificent property which was once home to Friends star Matthew Perry has a sale price of approximately 7 million pounds.

Spread over the top three floors of the 100-unit building, the spacious apartment has three bedrooms (totaling 2,475 sq.ft of space) on the sixth and seventh floors and a roof terrace on the eighth floor which at approximately 1,000 sq.ft is considered one of the largest in London. A second wrap around terrace can be accessed from the exquisitely furnished living room and master bedroom.

One of the features of the generously proportioned master bedroom is a large walk-in wardrobe and in the marble-clad bathroom, you can enjoy a leisurely soak in the impressive standalone bathtub.

As Martin Bikhit, Managing Director of Kay & Co says “The panoramic views from both the seventh and eighth floors are majestic, with the London cityscape to the south contrasting with the lush greenery of Regent’s Park to the north. We feel that this would be the perfect property for a glamorous couple to call home.”

To arrange a viewing to this gorgeous Fitzrovia apartment give us a call. For information about other properties for sale in Fitzrovia browse through our portfolio of stylish real estate.

If you’re looking for a period home, The Bailey, a 685 sq.ft vintage bungalow in Marylebone is worth visiting. Situated inside the courtyard of Dorset House (a Grade II listed building), this standalone Central London property offers luxurious living in the heart of the city.

A stylishly paved terrace filled with greenery and lit with solar lamps encircles the serene bungalow. Inside, you will find eclectic art pieces and open-plan dining and kitchen spaces. Abundant natural light filters in through floor-to-ceiling windows and a skylight.

Since The Bailey is part of Dorset House, you can enjoy 24 hr security and porterage, amenities provided to Dorset House’s occupants. As Paul Sulkin, director at London estate agents Kay & Co says “It’s an oasis in the city and an absolute hidden gem in the heart of Marylebone.”

To arrange a viewing to this gorgeous bungalow give us a call. For information about other properties to rent in Marylebone check out our website.

Located in Montagu Mansions in Marylebone, this prestigious address is steeped in military history and has the distinction of being the strategic base for “Churchill’s Private Army” (planners of D-Day). If you are looking for luxury apartments for sale in Marylebone, check out this centrally located one.

Coming with a price tag of £4.7m, the duplex apartment is built on classical Victorian lines. Beautifully finished with three-metre high ceilings, an exquisite marble-tiled entrance hall and formal drawing room, this unique Marylebone property is truly a home to be proud of.

In the words of Paul Sulkin, director at London estate agents Kay & Co “The original features, including the magnificent marble flooring and private raised entrance direct from the road give a real sense of occasion every time you step through the front door.”

To arrange a viewing to this gorgeous apartment give us a call. For information about other apartments for sale in London check out our website.

Kay & Co – Bayswater and Hyde Park (W2)

Review of Q1 2016

As anticipated, the first quarter of 2016 saw an increase in activity in the central London housing market. Investors and second home purchasers were eager to complete their deals before the 3% stamp duty surcharge came into force at the beginning of April. What happens next depends on the reaction of investors to the increased stamp duty costs and how the country votes on 23rd June in the EU referendum.

Investors boosting activity levels

The first quarter of 2016 (Q1 2016) saw a huge increase in sales in Bayswater and Hyde Park compared to the same period in 2015 (Q1 2015). Overall there were 54% more sales recorded in the area in Q1 2016 compared to Q1 2015. This compares with a 13% increase in transactions across prime central London over the same period. While a dramatic rise, it is worth noting that sales levels in Q1 2015 were particularly low, as they were affected by stamp duty reform at the end of 2014 and uncertainty in the run-up to the election. The relatively low number of sales in Bayswater and Hyde Park (compared to the whole of PCL) mean that small changes in actual numbers can have a large effect on the percentages.

The General Election led both buyers and vendors to hold off on activity in the early months of 2015. In a similar vein, the Mayoral election in May and the EU Referendum in June are likely to subdue activity rates in the coming months of 2016. The major concern is the uncertainty that these events are bringing to the market. Many feel that, if the country votes to remain within the EU, the renewed certainty will encourage back buyers who have been adopting a wait and see approach. The impact of a Brexit is much less apparent, as it will prolong uncertainty in the market. However, a predicted fall in the value of Sterling may attract increased foreign investors as a result of currency exchange advantages.

Annual change in transactions across W2 compared to prime central London

Source: Dataloft using LonRes data

Bayswater and Hyde Park price growth outperforming PCL

Stronger levels of demand in the first months of 2016 have supported some increases in average prices. On an annual basis, average prices per square foot in W2 are now 5.5% higher than they were in the first quarter of 2015. This compares with a 3.4% increase across prime central London. However, with uncertainty in the market, it is unlikely that prices will rise much further in 2016.

Annual change in average prices per square foot across W2 compared to prime central London

Source: Dataloft using LonRes data

Stamp duty effect

The full impact of the increased stamp duty for second property purchasers will take a number of months to be revealed. We anticipate that transaction levels will take a hit in coming months as investors take stock of the market and review their options. With the reduction in mortgage tax relief on buy-to-let properties, some investors may choose to sell up all or part of their portfolios.

However, residential property remains a valuable and profitable investment choice for many. Long-term investors may well absorb the increased costs in the expectation of capital growth on their properties.

Furthermore, with the average cost of a two bedroom flat in Bayswater and Hyde Park being 31% lower than in the rest of prime central London, significant savings can also be made on stamp duty costs by investors. Comparing average sales prices for two bedroom flats, investors in Bayswater and Hyde Park would pay 44% less than in prime central London.

Typical stamp duty cost on a two bedroom flat

Source: Dataloft, using LonRes data, based on average sales price from Jan 2015 to date

The lettings market

Fewer rental properties were let in Bayswater and central London in Q1 2016 than in Q1 2015. In Bayswater and Hyde Park lets were down by 14%, a bigger decrease than across PCL, which saw 7% fewer properties let.

However, average rental values have continued to rise. In Bayswater and Hyde Park, the average rent paid in the first quarter of 2016 was 2.9% higher than in the first quarter of 2015. Renting in Bayswater and Hyde Park remains a more affordable option for many tenants. In Q1 2016, average rents were around 28% below the prime central London average.

Average weekly rents in W2 and across prime central London

Source: Dataloft, using LonRes data

Note that Bayswater and Hyde Park catchment area (referred to in this report as W2) includes the postcode sectors of W2 2 and W2 3.

Kay & Co – Marylebone Market Commentary Q1 2016

Review of Q1 2016

As anticipated, the first quarter of 2016 saw an increase in activity in the central London housing market. Investors and second home purchasers were eager to complete their deals before the 3% stamp duty surcharge came into force at the beginning of April. What happens next depends on the reaction of investors to the increased stamp duty costs and how the country votes on 23rd June in the EU referendum.

Investors boosting activity levels

The first quarter of 2016 (Q1 2016) saw a huge increase in sales in Marylebone compared to the same period in 2015 (Q1 2015). Overall there were 46% more sales recorded in the area in Q1 2016 compared to Q1 2015. This compares with a 13% increase in transactions across prime central London over the same period. While a dramatic rise, it is worth noting that sales levels in Q1 2015 were particularly low, as they were affected by stamp duty reform at the end of 2014 and uncertainty in the run-up to the election. The relatively low numbers of sales in Marylebone (compared to the whole of PCL) mean that small changes in actual numbers can have a large effect on the percentages.

The General Election led both buyers and vendors to hold off on activity in the early months of 2015. In a similar vein, the Mayoral election in May and EU Referendum in June are likely to subdue activity rates in the coming months of 2016. The major concern is the uncertainty that these events are bringing to the market. Many feel that if the country votes to remain within the EU, the renewed certainty will encourage back buyers who have been adopting a wait and see approach. The impact of a Brexit is much less apparent, as it will prolong uncertainty in the market. However, a predicted fall in the value of Sterling may attract increased foreign investors as a result of currency exchange advantages.

Annual change in transactions across Marylebone compared to prime central London

Source: Dataloft using LonRes data

Marylebone price growth outperforming PCL

Stronger levels of demand in the first months of 2016 have supported some increases in average prices. On an annual basis, average prices per square foot in Marylebone are now 5.6% higher than they were in the first quarter of 2015. This compares with a 3.4% increase across prime central London. However, with a feeling of uncertainty in the market, it is unlikely that prices will rise much further in 2016.

Annual change in average prices per square foot across Marylebone compared to prime central London

Source: Dataloft using LonRes data

Stamp duty effect

The full impact of the increased stamp duty for second property purchasers will take a number of months to be revealed. We anticipate that transaction levels will take a hit in coming months as investors take stock of the market and review their options. With the reduction in mortgage tax relief on buy-to-let properties, some investors may choose to sell up all or part of their portfolios.

However, residential property remains a valuable and profitable investment choice for many. Long-term investors may well absorb the increased costs in the expectation of capital growth on their properties.

Typical stamp duty cost on two bedroom flat

Source: Dataloft, using LonRes data, based on average sales price from Jan 2015 to date

The lettings market

Marylebone’s lettings market has also had a busy start to 2016. There were 12% more properties let in Q1 2016 than there were in Q1 2015. That said, global financial uncertainties continue to affect demand levels for rental properties in some parts and across prime central London as a whole there were 7% fewer properties let in the first quarter compared to the same period in 2015.

In Marylebone, average rental values rose by 0.8% over the first quarter and are now 5% higher than they were in Q1 2015. Renting in Marylebone remains a more affordable option for many tenants. In Q1 2016, average rents were around 20% below the prime central London average.

Average weekly rents in Marylebone and across prime central London

Source: Dataloft, using LonRes data

PrimeResi’s article captures the reactions of several key individuals in the prime property industry to Budget 2016 (Chancellor George’s eight budget speech). Amongst those who shared valuable insights are Martin Bikhit, managing director of London estate agents Kay & Co.

Referring to the increased Stamp duty charges, Bikhit states “Unfortunately, the higher rates of Stamp Duty Land Tax that were announced in 2015 and the 3% surcharge on buy-to-let properties and second homes will continue to stifle the property market in London”.

Bikhit goes on to mention several positives of Budget 2016 like:

• Cutting of capital gains tax as this allows for greater investment in London.
• Announcement of a policy to help redevelopment of brownfield land as it will create affordable housing.

According to him, if the UK economy is able to steadily grow until 2020, this economic growth coupled with London’s strong position as an international cultural and business hub should go a long way in cushioning the London property market against any big changes in the global economy.

Read more about Budget 2016 here and find out more about our properties for sale in London on our website.

WhatHouse’s recently published article features new home developments across London. With flats for sale in London starting at £101,875 (Jessops building) and going up to £770,000 (Quebec Quarter) there is a stunning residence to suit every budget. For those with deep pockets The Village Green where homes cost upwards of £1.795 million is an ideal option. Other sumptuous new developments include Bentley Place and the striking Liberty building.

High net worth individuals looking for investment properties are drawn towards Bayswater (W2) and Hyde Park Estate where, according to research from London estate agents Kay & Co properties are undervalued.

According to Martin Bikhit, “New luxury developments throughout the W2 postcode will reach build completion in 2016 and this will boost prices even further.”

Buying property is therefore a good bargain as return on investment is guaranteed long-term.

Find out more about property for sale in London W2 on our website.

City A.M.’s article highlights why leafy Bayswater with its white stucco-fronted properties for sale is considered the next big Central London investment opportunity. Property prices are expected to soar once Queensway’s regeneration is complete and hence high net worth individuals are losing no time investing in the area’s luxury new developments.

Now is certainly the right time to invest, as according to a report by London estate agents Kay & Co, property values in Bayswater are £400 per sq.ft less on average as compared to properties for sale in prime Central London.

Regarded by Martin Bikhit, managing director of Kay & Co as “the most undervalued location in London’s West End”, this area which was often visited by legendary pop star Michael Jackson is an ideal choice if you are looking for an investment opportunity.

Find out more about our properties for sale in Bayswater or request a valuation of your Bayswater property on our website.

A review of 2015

If 2014 was a year characterised by lightning fast sales, rapidly rising property values and the fear of a property bubble near bursting, 2015 was quiet by comparison. We have put together a review of the year that paints a slightly sombre picture but also accentuates the positives that could be taken out of it for Bayswater and Hyde Park (W2) and how these could be carried over into the new-year.

Election concerns

The election loomed large in the first few months of the year and this created a wait and see approach from many vendors and buyers. One of the major concerns was the potential implementation of mansion tax. However, despite avoiding this, the property market generally failed to pick up as anticipated.

The real reasons for the challenging market

It quickly became apparent that the main culprit for the quieter market conditions was stamp duty. The increased tax bill for purchases in the upper price thresholds was having a major impact on demand. The impact was compounded by a few other factors, like the increased tax burden, stock market fluctuations and the strength of Sterling against some currencies, which put off some overseas buyers. As a result, transaction levels over 2015 as a whole across prime central London were 18% lower than in 2014.

How did Bayswater and Hyde Park fare?

Although transaction levels in W2 over 2015 were 27% lower than in 2014, this does not tell the whole story. In a similar vein to the whole of prime central London, the biggest decrease in transactions took place in the first half of the year. However, while PCL as a whole failed to pick up, transaction levels in W2 actually started to improve as the year progressed. This area benefited from buyers looking further afield in light of the high costs of buying in more expensive parts. Indeed, by the final quarter of 2015, the number of sales recorded in W2 was 15% higher than the final quarter of 2014. In contrast, there were 19% fewer sales recorded in PCL in the fourth quarter of 2015 compared to the same period a year earlier.

Annual change in transactions across W2 compared to prime central London

Source: Dataloft using LonRes data

How did this affect property prices?

As a result of lower demand levels across central London, average sales prices per square foot ended the year largely unchanged on the final quarter of 2014. In W2 prices fell in the first quarter of the year but the area then enjoyed three successive quarters of growth. This meant that, on an annual basis, average prices per square foot in W2 ended the year 5% higher than in the final quarter of 2014.

Annual change in average prices per square foot across W2 compared to prime central London

Source: Dataloft using LonRes data

Why have Bayswater and Hyde Park fared better than PCL as a whole?

As overseas demand waned in some parts of central London and higher stamp duty charges acted as a deterrent to some buyers in the most central parts, properties in W2 were appealing to domestic owner-occupiers. Lower prices than in other parts of central London meant that over half of buyers (52%) in W2 benefited from stamp duty reform and paid a lower level of tax than they would have done in 2014. Those who did end up with a higher stamp duty rate paid, on average, £52,000 more than they would have done based on the same sale a year earlier. In contrast, 65% of buyers across prime central London incurred additional stamp duty charges. On average, this amounted to an additional amount of £91,000 per property sale.

Proportion of property sales in 2015 which paid more or less stamp duty under revised rules

Source: Dataloft using LonRes data

What about 2016 for Bayswater and Hyde Park?

In the short term, transaction levels are likely to be strongest in the first quarter of 2016 as investors and second home purchasers rush to complete before the additional 3% stamp duty comes into force in April. After this, the market may quieten again as high pricing and tax burdens make buyers think twice about their next move.

However, the appeal of Bayswater to occupiers is likely to continue in 2016, particularly with the increased costs of buying elsewhere in central London. This should cushion it from reduced demand levels in other parts of central London.

Average sales prices are likely to continue to rise in 2016, albeit at low levels of growth. A period of low level growth will be good news for those who concerned about over-pricing in the wider market.

The lettings market

Across Bayswater and central London, 2015 was rather a mixed year for the lettings market. Although the year started strongly, levels of demand for rental property started to wane as the year progressed. The volatility in financial markets across the world and weaker levels of employment in some sectors were contributing factors.

At the same time, the slower sales market meant that some vendors who were unable to sell their properties offered them for rent. This led to an increase in rental stock in some areas. With more choice of available properties, tenants were able to be more selective and were also prepared to negotiate on rents. This affected the rental values achieved in the second half of the year.

In Bayswater, average rental values rose by 9.8% in the first half of the year but then fell back by 7.8% in the following six months. However, the strong rise in the first half of the year meant that, on an annual basis, rents rose by 2.1% across Bayswater. This compares with a 4.2% increase in rents across central London as a whole between Q4 2014 and Q4 2015.

Change in average rental values in the first and second half of 2015

Source: Dataloft, using LonRes data

Note that Bayswater and Hyde Park catchment area (referred to in this report as W2) includes the postcode sectors of W2 2 and W2 3.

A review of 2015

If 2014 was a year characterised by lightning fast sales, rapidly rising property values and the fear of a property bubble near bursting, 2015 was quiet by comparison. We have put together a review of the year that paints a slightly sombre picture but also accentuates the positives that could be taken out of it for Marylebone and how these could be carried over into the new-year.

Election Concerns

The election loomed large in the first few months of the year and this created a wait and see approach from many vendors and buyers. One of the major concerns was the potential implementation of mansion tax. However, despite avoiding this, the property market generally failed to pick up as anticipated.

The real reasons for the challenging market

It quickly became apparent that the main culprit for the quieter market conditions was stamp duty. The increased tax bill for purchases in the upper price thresholds was having a major impact on demand. The impact was compounded by a few other factors, like the increased tax burden, stock market fluctuations and the strength of Sterling against some currencies, which also put off some overseas buyers. As a result, transaction levels over 2015 as a whole across prime central London were 18% lower than in 2014.

How did Marylebone fare?

Although transaction levels in Marylebone over 2015 were 15% lower than in 2014, this does not tell the whole story. In a similar vein to the whole of prime central London, the biggest decrease in transactions took place in the first half of the year. However, while PCL as a whole failed to pick up, transaction levels in Marylebone actually started to improve in the third quarter. However, they slipped back again in the final quarter of 2015, with the number of sales recorded in Marylebone 17% lower than the final quarter of 2014. This is comparable with the 19% fewer sales recorded in PCL in the fourth quarter of 2015 compared to the same period a year earlier.

Annual change in transactions across Marylebone compared to prime central London

Source: Dataloft using LonRes data

How did this affect property prices?

As a result of lower demand levels across central London, average sales prices per square foot ended the year largely unchanged on the final quarter of 2014. In Marylebone, it was not until the final quarter of the year that annual price growth turned negative. On an annual basis, average prices per square foot in Marylebone ended the year 3.5% lower than the final quarter of 2014.

Annual change in average prices per square foot across Marylebone compared to prime central London

Source: Dataloft using LonRes data

Marylebone fared better than PCL as a whole over the last five years

The large number of developments in Marylebone have significantly increased its popularity in recent years and driven up prices. These have increased by 51% in the last five years. The level of growth in values, although bettered by Mayfair, is on a par with Knightsbridge and higher than Chelsea and PCL as a whole.

Growth in average prices per square foot across prime central London markets between 2010 and 2015

Source: Dataloft using LonRes data

What about 2016 for Marylebone?

Looking ahead, Marylebone will continue to benefit from strong levels of development in the area, with lots of new homes opportunities for occupiers and investors in the pipeline. A possible knock-on effect from this is that the level of new stock planned for the area could increase supply levels and keep price growth in check.

In the short term, transaction levels are likely to be strongest in the first quarter of 2016 as investors and second home purchasers rush to complete before the additional 3% stamp duty comes into force in April. After this, the market may quieten again as high pricing and tax burdens make buyers more sensitive. As a result, prices are unlikely to change significantly over 2016 but there may be some single-digit increases. A period of low-level growth will be good news for people who are concerned about over-pricing in the market.    

The lettings market

Across Marylebone and central London, 2015 was rather a mixed year for the lettings market. Although the year started strongly, levels of demand for rental property started to wane as the year progressed. The volatility in financial markets across the world and weaker levels of employment in some sectors were contributing factors.

At the same time, the slower sales market meant that some vendors who were unable to sell their properties offered them for rent. This led to an increase in rental stock in some areas. With more choice of available properties, tenants were able to be more selective and were also prepared to negotiate on rents. This affected the rental values achieved in the second half of the year.

In Marylebone, average rental values rose by 6.6% in the first half of the year but then fell back by 2.8% in the following six months. However, the strong rise in the first half of the year meant that, on an annual basis, rents rose by 3.7% across Marylebone. This compares with a 4.2% increase in rents across central London as a whole between Q4 2014 and Q4 2015.

Change in average rental values in the first and second half of 2015

Source: Dataloft, using LonRes data

HOTEL-STYLE LUXURY LIVING IN CENTRAL LONDON

Some of the best addresses in the world can be found in London’s new luxury apartment complexes, where residents enjoy much more than just unparalleled living space with spectacular views. And, as this report will explore, many of these ultra-prime developments can be found in emerging property hotspots like Bayswater and Marylebone.

Welcome to a new style of city living, where residents have access to concierge facilities, gyms, swimming pools, spas, retail outlets, valet parking and any number of bespoke services, all available on-site and delivered to an exceptionally high standard. It’s just like living in a luxury hotel. That’s why we have come up with a star-rating system to help demonstrate how these superb properties deserve to rub shoulders with some of London’s luxury hotels.

This new report has been commissioned by leading London estate agency Kay & Co, with research analysis produced by Dataloft.

ULTRA-PRIME DEVELOPMENTS SPRINGING UP IN EMERGING HOTSPOTS

Historically, luxury apartments have clustered in London’s traditional prime heartlands of Belgravia and Mayfair. But in recent years, developers have shifted their attention and delivered ultra-prime products in London’s emerging hotspots such as Fitzrovia, Marylebone, Westminster and Bayswater.

The map below highlights the changing geography of luxury apartment developments, showing the shift from traditional prime to new prime London.

APARTMENT BUILDINGS WHICH RIVAL HOTELS

London’s new build market has witnessed phenomenal investment in recent years. The rise in global wealth and an appetite for best-in-class property has encouraged developers to stretch the boundaries of specification and pricing to offer not just a home but a lifestyle.

As a result, prices paid for new build apartments in central London have increased at an astonishing rate. Based on the year the property completed, the average price rose from £511,000 in 2009 to £2.25 million in 2014–15. That’s an incredible 341% rise.

New apartments achieved more than double the price paid for second-hand flats in 2013, and over the past 18 months they have sold at a 62% premium. It is not ‘newness’ that drives the price premium but quality.

As the demand for luxury living escalated, developers have continued to raise the bar on finishes and service levels. Prices have risen as standards have soared.

REPORT METHODOLOGY

Today, expectations in the new build market are higher than ever. Developers seeking to achieve record-breaking prices are challenged to deliver exceptional levels of extravagance and service, and new apartment complexes are designed to offer just that. In order to quantify the changing market, we devised a hotel-style star-rating system for new developments across prime central London.

We collated amenities in all developments comprising 40 or more private units built during the past ten years or currently under construction (38 in total). We allocated a score to each based on the range of amenities. We used a dual-strand system of analysis and awarded points for the presence of amenities or services as well as additional points for the quality of that amenity or service. This methodology is set out at the end of this report. Our database included almost 4,000 units of high quality residential development delivered over the past decade.

STAR-RATINGS: THE FINDINGS

London’s best addresses for hotel-style luxury living

We have looked at 38 major apartment buildings for this report: 10 have been allocated five stars; 9 four stars; 10 three stars; 7 two stars and 2 one star.

The shift from traditional prime to new prime

An analysis of 4* and 5* units developed between 2005 and 2016 shows how the geography has shifted from London’s traditional prime locations of Mayfair and Belgravia to the new prime locations in Marylebone and Fitzrovia.

What makes a five-star development?

The dual strand system enabled us to differentiate between, say, a 20-metre basement swimming pool and a 50-metre roof-top pool with panoramic views of the city. The grading system is based on a series of criteria including: concierge service, views over London, on-site facilities, parking (including valet parking), outside private and communal space, location and the number of Michelin-starred restaurants in the vicinity.

Our analysis is limited to developments with 40 or more private units. It does not intend to suggest that smaller schemes cannot also be considered five-star developments, and in fact there are a number of these across prime central London.

A new trend in central London has seen the number of apartment buildings with lifestyle facilities that rival four and five-star hotels rise dramatically over the last 10 years.

Estate agent Kay & Co has devised a hotel-style star-rating system - exclusively for Telegraph Property - for the new prime central London developments ranked developments in the capital according to the presence of certain features and amenities usually akin to top luxury hotels.

More 5-star apartments were completed in 2015 and due to be finished in 2016, than in the 10 previous years combined.

Martin Bikhit of Kay & Co says: “Global demand, rising prices and excellent developer standards have resulted in a huge expansion of this hotel style apartment offering. A key trend has been an emergence of these projects to the North of the West End in locations including Marylebone, the Hyde Park Estate, Bayswater and Fitzrovia.

"This is in the heart of our Kay & Co operating area. Over the next five years we can expect to see more three, four and five star rated projects in Euston, Kings Cross and Paddington. A new prime London region is emerging.”

See the highest scorers and read the full story in The Telegraph:

Over the past ten years, the number of opulent apartments offering four and five-star lifestyle amenities like a spa and in-room dining has increased dramatically and today, there are more than 4,000 such apartments in new developments across Central London.

Owned by high net-worth individuals, these ultra-prime apartments when leased are strong rivals to the area’s luxury hotels and serviced flats, since their exceptional levels of lavishness and service have led to them being the preferred accommodation choice for visitors to London.

As Martin Bikhit, Managing Director of Kay & Co says “Global demand, rising prices and excellent developer standards have resulted in a huge expansion of this hotel style apartment offering across eight Central London districts including Marylebone, the Hyde Park Estate, Bayswater and Fitzrovia. This is in the heart of our operating area”.

Find out more about our sumptuous flats for sale in Central London on our website.

Over the past ten years, London has seen a startling rise in the number of new ultra-prime apartments offering lifestyle amenities. The last word in luxury living, these hotel-style apartments are being sold to high-net individuals at record-breaking prices in excess of £2.25 million (price increase is 341 percent of what a similar apartment cost in 2009).

Another record breaking figure indicated in the report is the 62 per cent price premium which new apartments in Central London sell at as compared to second-hand conventional apartments.

According to Martin Bikhit, Managing director of Kay & Co, “There are now some 4,000 of these apartments, 1,083 5-star rated, located across eight Central London districts including Marylebone, the Hyde Park Estate, Bayswater and Fitzrovia. This is in the heart of our Kay & Co operating area.”

Find out more about our hotel-style flats for sale in Central London on our website.

New developments offering five-star lifestyle amenities have risen dramatically over the past ten years and today with over 1,083 five-star apartments in London and high-net worth individuals across the globe showing a marked preference for these ultra-prime Central London homes with their hotel-style facilities and exceptional service, luxury hotels are starting to sit up and take note.

As Martin Bikhit says “Global demand, rising prices and excellent developer standards have resulted in a huge expansion of this hotel style apartment offering. A key trend has been an emergence of these projects in locations including Marylebone, the Hyde Park Estate, Bayswater and Fitzrovia.This is in the heart of our Kay & Co operating area.”

London estate agents Kay & Co have devised a hotel-style star-rating system which has enabled them to rank London’s most exclusive new developments. Occupying top position was One Hyde Park while The Knightsbridge ran a close second.

Find out more about our properties for sale in London on our website.

London estate agents Kay & Co’s ‘The Apartment Buildings Rival Luxury Hotels’ report elaborates how international buyer demand and a rise in global wealth has led to luxury apartment projects in London integrating hotel-style facilities in their new developments.

This trend which is creating a ‘new prime London’ is especially noticeable in Central London where an ultra-luxurious apartment equipped with lifestyle amenities costs upwards of £2.25 million.

To quote Martin Bikhit, Managing Director of Kay & Co “There are now some 4,000 of these apartments, 1,083 five-star rated, located across eight Central London districts including Marylebone, the Hyde Park Estate, Bayswater and Fitzrovia. This is in the heart of our Kay & Co operating area.”

Find out more about our opulent properties for sale in Central London on our website.

Zoopla’s recently published quiz is a hit with readers eager to uncover the famous connection behind each of the 6 prestigious addresses.

Amongst those mentioned is Apple Apartments, a luxury development located in the historic building at 94, Baker Street which was formerly the headquarters of the Beatles and the location of their iconic shop The Apple Boutique. Kay & Co has a fabulous apartment to let here.

Also on this 18th century street is Chiltern Court, once home to an iconic writer. This striking period building has several elegant 2 bedroom apartments which are an ideal choice if you are looking for a property to rent in Marylebone.

Bloomsbury also finds a place in the quiz, as the area where the fictitious Darling family resides and if you are considering buying a house in Central London, the district’s eye-catching Victorian, Georgian and Edwardian villas are worth arranging a viewing for.

Another Central London address Zoopla mentions is a splendid mews, originally the Paddington residence of a knighted English actor. Buyers will be interested to note that Kay & Co is marketing some magnificent Paddington properties in nearby Albion Close and Hyde Park Estate.

Find out more about our properties for sale in London on our website.