Property insider: three prime property hotspots with outperforming house price growth in the past five years

Even in a tough property market there are areas which outperform prevailing house price trends.

Often these locations represent relative value for money compared to their neighbours, and have therefore benefited from a ripple of new buyers moving in. Sometimes a neighbourhood flourishes thanks to new inward investment making it suddenly more appealing to buyers.

But, whatever the reasons, hidden within the wider travails of the property market are locations where price growth is healthy and the outlook is sunny. Here are three spots to watch.

1. Suburban London: Loughton

Five-year price growth: 33 per cent

Loughton, in the Epping Forest district of Essex, has seen stellar house price performance, with growth more than three times the average for similar suburban locations over the past few years.

This area’s success is down to three key factors: connectivity, affordability, and schooling, which drives people out of more central parts of London into the fringes of Essex, says James Lamb, head of Savills’ Loughton office.

Loughton sits at the outer reaches of the Central Line. “Having the Tube makes a huge amount of difference to people who want to swap city life for something more suburban, but still want to be within 30 to 40 minutes of their desks,” said Lamb.

Buyers could find this sort of journey time elsewhere, of course. “But if you look at the prices in its counterparts west of London, it is almost double,” said Lamb. “In Loughton you get bigger houses, with more bedrooms, and more outside space.”

Property ranges from huge and seriously grand Victorian piles with an acre or two, which sell for £2 million-plus, to modern executive houses at around £1.2 million. A semi-detached, three-bedroom home on a leafy street would come in at around £750,000 and a two-bedroom flat at around £450,000.

Families love Loughton because of its good choice of schools, both private and state, led by Hereward Primary School, Davenant Foundation School, and Debden Park High School, all rated outstanding by Ofsted.

They also love its proximity to the beauties of Epping Forest, which really comes into its own at this time of year with endless opportunities for walking, cycling and horse riding.

Loughton also has good local sports facilities including an excellent council-owned leisure centre and several active sports clubs.

Its slight Achilles heel is the workaday high street. Lamb advises going to Epping or Buckhurst Hill for a better choice of shops and restaurants, although he notes that things are changing in Loughton.

The recent arrival of the Ginger Pig, the posh butchers with branches in Hackney and Borough Market, signals that Loughton is starting to attract more interesting, villagey kind of businesses.

2. Commuter belt: Chelmsford, Essex

Five-year price growth: 18 per cent

With its city status newly minted, this market town has been firmly in the spotlight for the past few years.

An astonishing 25 per cent of buyers moving to Chelmsford work in either finance or insurance, so there is a strong flow of City workers looking for family-sized homes and an easy commute.

Part of the reason for Chelmsford’s rise is its great transport links. Rush hour trains take about half an hour to reach Liverpool Street. And when the Elizabeth Line is fully open in 2019, commuters will be able to use it to easily access the West End, Canary Wharf and Heathrow, via nearby Shenfield Station.

Chelmsford officially became a city in 2012. “Since then there has been a noticeable investment in infrastructure, pedestrianisation in the city centre, and a general smartening up,” said Stephen White, head of office at Savills in Chelmsford. “The other thing that has been noticeable has been an influx of residential and commercial developments, and the introduction of high end shops and restaurants.”

Families love Chelmsford because of its great schools. King Edward VI Grammar is one of the top secondary schools in the UK. It is boys-only until the sixth form, so parents of younger girls opt for the excellent Chelmsford County High.

Chelmsford also has a good range of housing types, from Victorian terraces and villas, to new developments and country homes in lovely satellite villages.

This wide range means Chelmsford has something to suit most budgets.

A three-bedroom Victorian terrace close to the station would cost between £400,000 and £500,000, while a five-bedroom detached period house would come in at between £1.25 million and £1.5 million.

Modern houses offer a bit more bang for your buck: a terraced house would cost between £350,000 and £450,000, while a large executive home costs around £1 million.

In the most sought-after nearby villages – notably Danbury and Little and Great Waltham – you would pay between around £400,000 and £450,000 for a small but pretty cottage, up to around £1.2 million for a five-bedroom manor house with an acre or two.

There are also first-rate sports facilities (from diving to ice skating), and Stansted Airport is just 20 minutes by car – ideal for weekends away.

Central London: Marylebone

Five-year price growth: 16 per cent

Great location? Check. Lovely shops, bars, and restaurants? Check. Beautiful period architecture, ranging from elegant townhouses and mews houses, to fabulous modern flats? Check, check, check.

The strangest thing about the rise and rise of Marylebone is why it took top-end buyers so long to realise its charms compared to more established but often stuffier options, such as Kensington or Notting Hill.

“For many years it was an area that was overlooked in comparison to Mayfair or Regent’s Park,” says Alex Ross, associate director of Savills in Marylebone.

But those who did invest in Marylebone have seen their faith in the area pay off. Over the past five years property prices have consistently risen in Marylebone, while values across the rest of prime central London, a mile or so to the west, have fallen by an average of nine per cent.

“Marylebone still offers value compared with its neighbours,” explained Frances Clacy, a research analyst with Savills Residential Research. “Prime second-hand prices average around £1,700 per sq ft, which is almost 30 per cent lower than nearby Mayfair.”

And while buyers were starting to realise how much bang they could get for their buck in Marylebone, its major landlords, the Howard De Walden Estate and The Portman Estate, were quietly pouring billions of pounds into upgrading its shops and restaurants, while new high-end developments stimulated interest in the area.

The area also has staying power: buyers arrive as singles or couples for the nightlife and central location and stay on when they have families, to enjoy the open green spaces of Hyde Park and Regent’s Park, as well as good, local schools.

Ross said the split in Marylebone between British and international buyers is around 40 per cent British to 60 per cent international. Meanwhile there is a fairly even split between those who use it as a main residence and those buying a second home. The number of investors planning to buy and rent a property is, by comparison, tiny at just over 10 per cent last year.

Buyers do, of course, need to have pretty deep pockets for a Marylebone address. A two-bedroom period flat will cost between £1.6 million and £2 million, a pretty mews house around £5 million, and a four-bedroom town house upwards of £7.5 million.

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