Chelsea

Kensington

Knightsbridge

Mayfair

Notting Hill

St John's Wood

Sloane Street

CHELSEA

Charlie Williams, Associate Director
Oliver Melotte, Head of Department, Residential Lettings

Best-in-class, turnkey properties in Chelsea are still holding their value, and in some cases being sold for record prices. At a super prime level, £8 million plus homes are selling well with purchasers buying into a lifestyle and community.

This explains the popularity and success of Chelsea Barracks. The scheme also meets other buyer criteria; security is incredibly important, particularly to Americans, and outside space continues to command a premium.

Asian buyers have been very active over the last few months, as well as families who made the move to the countryside during the pandemic but have come back to prime central London.

Chelsea offers the feel of a Home Counties’ golden village but with the convenience, bustle and culture of the King’s Road and Sloane Square. Pretty enclaves such as Chelsea Green and Markham Square have a strong community feel, with independent and artisanal stores.

More change is coming with The Lucan Autograph Collection, which will be the first branded Marriott residences in the UK. The boutique building will present 31 new one- to three-bedroom apartments next year priced from £3 million.

A major factor fuelling the rental market this year is education. Students are back, renting apartments around South Kensington and Sloane Square, often funded by their parents. The new Renters’ (Reform) Bill and last year’s 12% rise in rents means students are on the hunt for two-year contracts. They do not want to commit to high rents only to be moved on in a year’s time, which has made for a busy summer.

KENSINGTON

Peter Bevan, Co-Head of Prime Central London
Louise Good, Head of Department, Residential Lettings

Leafy streets, proximity to swathes of green space, internationally renowned schools and large family houses with gardens mean Kensington is dominated by families. There are plenty of local hero businesses all adding to the bustling community scene.

This market is fuelled by domestic families upsizing and downsizers selling country houses and moving back into town. The latter choose mansion blocks serviced by a lift and a porter and are major movers in the Kensington apartment market this year. US buyers are also active, taking advantage of the currency play.

The lettings market has been frantic over the last few years with multiple bids on every property. Although rents are softening, smaller landlords are selling off their investments which is squeezing supply and will cushion rents.

Kensington’s supply of world class developments include Holland Park Gate and Lancer Square, neighbours to the expansive green spaces of Holland Park, and Kensington Gardens respectively.

Holland Park Gate sits behind the much loved art deco façade looking towards the southern entrance of Holland Park. Due to complete next year, it has caught the attention of both local and international purchasers eager to secure a best in class home in this sought after location.

Queensway is being regenerated and bookended by two impressive schemes. Park Modern sits on north-western corner of Hyde Park and completed this summer. It has sold well and the final wave of apartments have recently been released starting from £2.15m. Jeremy King’s new restaurant, The Park, will sit on the ground floor and takes influence from Europe’s grand cafes and brasseries.

The Whiteley’s art deco shopping centre at the other end of the Queensway has undergone a £1bn transformation into a state-of-the-art boutique complex of hotel, (the UK’s first SixSenses) apartments and retail stores. These exciting projects have triggered the upgrade of Queensway and a price uplift for properties in the surrounding residential roads is set to follow.

KNIGHTSBRIDGE

Noel De Keyzer, Head of Office
Danny Daniel, Head of Department, Residential Lettings

A renewed and palpable interest in Knightsbridge is building. Enquiries from buyers, the number of viewings, and footfall on its newly manicured curb scape is rising.

In particular, £10 million-plus trophy homes are selling well. There has been a re-emergence of activity this year with the international buyer back perusing this exclusive neighbourhood, which was very much their stomping ground prior to the pandemic.

Things have changed in their absence. The Knightsbridge Estate has completed its regeneration of a corridor of historic buildings in the heart of Knightsbridge, turning it into the ultimate shopping experience with a vast Apple showroom and a flagship Burberry store. The now-pristine pavements have been widened to improve the retail realm, the underground station significantly improved and 10,000 sq ft of new commercial space has been created.

Behind its flawlessly restored red brick Edwardian facade are 15 state-of-the-art luxury apartments at Knightsbridge Gate with 24-hour concierge. The prestigious residential landmark sets the scene for a newly invigorated Knightsbridge which, in the context of prime central London, is about to have its moment.

The lettings market in Knightsbridge continues to be buoyant with the calibre of property ever increasing. Landlords recognising the wants and needs of their tenants are seeing their properties let quickly, with some opting to fully re-develop exquisite houses and showstopping penthouses to cater to the local families and global players that occupy these homes. For some tenants, Knightsbridge is the ultimate destination to have a base thank to accessibility to high-end shopping and restaurants. Others are laying down roots and want to be central for work, school and nearby Hyde Park.

MAYFAIR

Fehd Alsaidi, Joint Head of Residential Sales
Charles Cutting, Joint Head of Residential Sales
Katie Heffernan, Head of Department, Residential Lettings

The world-leading developments No.1 Grosvenor Square, Twenty Grosvenor Square and 60 Curzon, which is close to completing, in addition to the promise of the new Rosewood Hotel and long-term investment by the Grosvenor Estate into streetscape and landscaping helped to put Mayfair back on the map.

There’s a fine selection of restaurants lining North Audley Street, which runs to Grosvenor Square where the central garden is being transformed into a biodiverse habitat.

The number of new members’ clubs is growing with an offering for every demographic, while old haunts such as the members’ club George has been stylishly refurbished and reopened.

Mayfair’s rich history, heritage and private member’s clubs heavily influenced the architectural practice at 60 Curzon. Designed by Thierry Despont, whose portfolio includes; The Carlyle Hotel, Claridge’s and The Ritz Paris, this deco-modernist building comprises 32 private residences. Prices start from £10.95m for a two-bedroom apartment and it is set to be unveiled this autumn.

The streets of Mayfair feel busy as reflected in the property market. Demand was consistent throughout 2022, mainly from dollar-based buyers, which has helped prices to settle and find their level this year.

Properties that are either historically special or within the right value window are enticing multiple interested parties. After all, values are still approximately 15% to 20% below where they were at the last peak, layer in the dollarsterling exchange rate and that presents a hefty discount. Newly renovated homes with a lift and a porter are selling well, but anything that requires substantial works or is outside the value window misses the market.

Tenants are as discerning as buyers. Global high net worth individuals want a base in Mayfair, but they will wait for the right turnkey product. Despite the development boom in Mayfair, its most significant in 100 years, there is still not an adequate supply of what people want to buy or rent.

NOTTING HILL

Alister Sherwood, Associate Director, Residential Sales
Archie Orr-Ewing, Director, Residential Lettings

For many, Notting Hill is a lifestyle choice. Families are drawn to the friendly areas around Westbourne Grove and affluent young professionals to the cool and quirky Portobello Road. Housing stock ranges from private mews enclaves to pastel coloured family homes. There does not seem to be one type of person buying or renting in Notting Hill as it presents something for everyone, whether that be for food, architecture or shopping. Neighbourhood restaurant, Gold, on Portobello Road pulls in crowds from all over London while locals love Ottolenghi for their morning coffee.

Over the last three years buyers and tenants have flocked to this vibrant yet relaxed area and in particular its garden squares which have performed extremely well. Up until the end of 2022, it seemed the Notting Hill market would never cool.

Inevitably, against a backdrop of interest rate hikes and uncertainty surrounding the financial markets, demand is beginning to soften. Deals are still being done but there is a cautiousness and a change of sentiment with buyers taking more time over their purchase as there is less competition. In fact, after a frenetic period, this feels like a return to a more normal market.

Lettings has followed a similar pattern. Since international business and office workers returned after Covid, along with executive relocation, properties were flying off the shelves. This year, there just isn’t the same bun fight. However, as small landlords start to sell off their investments, supply will be squeezed, a trend being seen across much of prime central London.

ST JOHN'S WOOD

Stephen Lindsay, Head of Office
Luke Hull, Head of Department, Residential Lettings

The flight to space, a defining trait of the pandemic housing market, triggered a flight to St John’s Wood. The sense of village, size of plot and availability of houses with outside space drew in prime central London buyers who had never before considered going north of the Marylebone Road.

Demand has continued and a lack of stock means prices in general have been propped up over the last 12 months, despite the economic backdrop. However, some motivated and savvy sellers have started to reduce their asking price now anticipating a correction leading up to the general election. St John’s Wood, compared to more central pockets of prime central London, therefore still looks good value for money.

The well-curated high street has come a long way and adds to the village vibe; an Ivy restaurant sits at one end and a Parisian café, Soutine, at the other. There’s a six-month landscaping project underway which resembles other successful projects on Mount Street in Mayfair and Elizabeth Street in Belgravia.

The biggest change however will come in the shape of a new micro neighbourhood to the east. The old King’s Troop army barracks is being reimagined as St John’s Wood Square. A £1.5bn family-orientated development that has been designed by Squire & Partners – the architects behind Chelsea Barracks. It will offer apartments and townhouses set amongst beautifully landscaped gardens. The Grade II listed riding school will be retained and become the centre for an extensive amenity offering, up there with the very best in London.

SLOANE STREET

Verity Wakley, Associate Director, Residential Sales
Georgina Bartlett, Head of Department, Residential Lettings

The stately red brick townhouses and mansion blocks that surround the private garden squares off Sloane Street are among the world’s most desirable addresses. Regardless of the economic headwinds which have dampened sentiment, best-in-class, family-sized houses with outside space have held their value.

The London family who are moving for schools, or upsizing within the area are active as life events dictate the need to move. Then there’s the elite who are living out a fantasy by living on the likes of Eaton Square.

However, interest rate hikes, inflation and economic uncertainty have impacted the apartment market. 2023 has been the year of price realignment in this sub-sector. Although the value of apartments has come down 18% since 2014, and the strength of the US dollar against the pound means these properties present good value, some overseas cash buyers are still waiting to see whether prices will slide further. This pricing correction coincides with the re-emergence of the international buyer, in particular American and Asian buyers. This suggests the apartment rebound is due.

There is high demand for turnkey standard residences which has fuelled interest in luxury developments such as 8 Eaton Lane in Belgravia with 42 apartments, a pool and gym. It completes in 2024. Set around seven garden squares and master-planned landscapes, Chelsea Barracks is built from fossilised limestone and designed to imitate the London square garden. An exciting new Spanish restaurant – the Campaner (the Bell Ringer) – has opened on site too. These schemes frame south Belgravia and become the southerly finale of Sloane Street.