Hyde Park property: Why there is a premium to pay

0
796

Last Updated on

It’s a hardly a secret that property is expensive in London, particularly in the exclusive West End of the capital where demand far exceeds supply. If you’re looking for value in the market, this isn’t necessarily the city for you. There’s a premium to pay for property across London, as the influx of bidders continues to inflate values, but this is particularly the case in the most desirable neighbourhoods such as Hyde Park.

According to Kensington property agent Simon Armitage, who works for Druce, high-quality properties within close proximity to the park itself are particularly in-demand. This means there is a premium of up to 50 per cent to pay for houses with a park view, he told Prime Resi. Mr Armitage explained that values are higher the closer you are to The Old Police House, the grand building in the middle of Hyde Park. In his view, the market pivots around this centre point.

The Old Police House ‘effect’

Mr Armitage explained that The Old Police House – which was built in 1900 in the style of the great English country estates – serves as a relevant marker for property prices in the Hyde Park and Kensington area. Mr Armitage said the closer a property is to the house – which now houses the park staff and police – the more it is likely to cost.

“One can expect to pay upwards of a 50 per cent premium on a house or apartment with a view of the park, although, this would likely only apply on properties over the ‘tipping point’ of 1,500 square foot (that is, large enough to accommodate a family),” he told the news provider. “A two-bedroom flat on Kensington Road, with views over the park, would usually sell for over £5 million, whereas I would expect a property of similar quality and size, but without the sought-after park views,  to be priced at around £3 million.”

Mr Armitage described Hyde Park as being “one of London’s iconic landmarks”. “Owning a home which looks onto it is certainly a status symbol, with international buyers in particular consistently emphasising the cachet a park view carries,” he stated. Mr Armitage added that, for some buyers, especially those from Russia and the Middle East, proximity to Harrods is of “paramount importance”, noting that Hyde Park and Harrods are “intrinsically linked in their minds”.

To buy a house or come to visit?

For many people, buying a property which overlooks Hyde Park is a lifelong dream – but one they are unlikely to fulfill due to budgetary constraints. The high price of property in this part of London effectively prices them out of the market.

For higher net worth individuals, buying here may be an option, but bidding on a house is not a decision that should be taken lightly. This is particularly the case given the premium needed to secure a property in this exclusive neighbourhood. Taking time to consider the full range of options is advisable.

If you are interested in living in this neighbourhood, it may be worth spending a week or so in the area before you buy. There are luxury hotel options in Hyde Park and Kensington, from which you can use as a base while you explore the area. This means you can see for yourself whether it is the right place for you to live – whether the facilities and local amenities meet your requirements.

You could even stay in The Montcalm Luxury hotels; in and around Hyde Park while exploring property options in other parts of London. Bespoke property is available in various parts of the city, so it may be advisable to compare and contrast before placing a bid on a particular home. There may be other alternatives available to you in the property market which have not yet been considered.

There’s little doubt that the Hyde Park and Kensington area has some major draws, from the beauty of the park – with views of the Serpentine – to the majesty of the Proms at the Royal Albert Hall. There are fine restaurants, high-end retailers, museums and galleries aplenty. It is certainly worth coming to visit this exclusive part of London, even if you opt not to buy a property and set up home here for the long term.

LEAVE A REPLY