Hyde Park - all 625 acres of it - has long been at the heart of prime central London’s residential property market. Homes on its edge are in constant demand and command huge premiums.
New research by Knight Frank reveals that house price growth in the north-west corner of the park has fallen far short of its near neighbours, making W2 - covering Bayswater, Paddington and Queensway - a prime postcode to watch.
By 2018, Paddington will be within a swift 10-minute commute of Liverpool Street station and just 17 minutes from Canary Wharf, thanks to a major new Crossrail station.
Once undesirable, busy Praed Street and the area surrounding the existing station is already being revitalised, while plans could be afoot for redevelopment of the Whiteleys shopping centre at the north end of Queensway.
“We forecast that prices of homes within a 10-minute walk of the future Crossrail station at Paddington will outperform the wider locality by one per cent between now and when the station opens in 2018,” says Tom Bill, Knight Frank’s head of London residential research.
Local B&Bs and backpacker hotels are becoming boutique new flats. New luxury developments, such as The Lancasters - a scheme of 77 new homes overlooking Hyde Park near Lancaster Gate - are also adding to the gentrification of the district.
House price growth in the neighbouring areas of Notting Hill and Hyde Park Estate has surpassed the prime central London average in the last two years as buyers seek more value away from Knightsbridge and Belgravia.
According to the report, buyers pay a premium of 155 per cent for homes within 50 metres of the southern edge of Hyde Park compared to those located between 50 and 300 metres away. The equivalent premium for a location within 50 metres of the northern edge of the park is 38 per cent.