‘Bargain’ postcodes in prime central London

A study of prime London’s heartland published today shows there are still a handful of postcodes where buyers without a seven-figure budget could invest wisely before soaring prices catch up with the area.
The unaffordability of prime central London, where four out of 10 homes sold last year for a minimum of £1 million, is well documented but research by London Central Portfolio — LCP — a residential investment specialist, found that within the 13.5 square miles of Westminster and Kensington & Chelsea there are 11 postcodes where average prices are less than £1 million.
 
These “bargain” postcodes are uniformly on the outer fringes of the two boroughs, but they are all tipped to outperform, as buyers are priced out of more central enclaves. They are all also close to main railway stations or major roads, in particular Paddington station, the Westway, Victoria station, and Earls Court and the Cromwell Road.
 
Despite the downsides of living in these sometimes noisy, polluted, congested, and commuter-heavy areas, LCP chief executive Naomi Heaton believes their gentrification is inevitable.
 
“Historically, prices have been held back in these areas,” she says. “This is due to the array of run-down commuter hotels and small ‘stop-over’ pieds-à-terre around major trunk roads and train stations which connect London to the rest of the UK — not to mention the swathes of people passing through these transport hubs daily.
 
“However, the existing infrastructure and amenities, coupled with pockets of attractive — albeit decaying — architecture make these areas particularly exciting in terms of future growth potential. We are already seeing them catch up as development turns the run-down hotels into new des-res properties.”
 
The cheapest of all the prime postcodes is SW1V 3, which covers the streets between Pimlico station and the Thames. The average house price is £593,600, putting it within reach of the Government’s Help to Buy scheme, which has a price threshold of £600,000 and is intended to help first-time buyers.
 
Neighbouring SW1V 4, the streets just west of the lines running out of Victoria station, also has prices below £1 million, but only just, with an average of £952,336.
 Other central London bargains are to be found in the streets straddling the Westway near Paddington (W2 1), between Paddington and Royal Oak (W26), and north of Marylebone station (NW1 6), where average prices stand at just over £631,000, just under £716,000, and just over £862,000 respectively.
 
“The smart investor will look towards the historically less traditional areas in prime central London for the future investment hotspots,” says Heaton.

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