Pimlico A local market review Pimlico snapshot Noted for its leafy garden squares, The area retains much of its original charm, Regency architecture, and a has over 350 Grade II listed buildings and has been partly designated a conservation pioneering grid of streets, Pimlico area since 1972. in London’s City of Westminster, is a small, largely residential area This idyllic blend of neighbourhood feel, green leafy spaces, character and amenity of central London. On the clusters, makes Pimlico a popular choice for northern banks of the Thames, those seeking a good value, well located the central position of the area area in central London. means it is an impeccably The area is separated from Belgravia and well-connected district of central bounded to the west by Victoria Railway London, easily walkable to many Station, to the south by the River Thames, of London’s major attractions, and to the east by Vauxhall Bridge Road. The area is largely residential and still retains universities, green spaces and a small neighbourhood and community feel commercial areas. with small boutique shops, restaurants and other local amenities dotted around in clusters amongst the largely residential locale. The area is also home to many of London’s original regency ‘squares’, providing a green leafy background to the Georgian terraces. Holborn University of Westminster Chancery Lane Paddington Tottenham Royal Opera Marble Arch Oxford Circus Court Road House Bayswater Lancaster Gate Bond Street London School Leicester Square Covent of Economics Piccadilly Circus Garden Temple Queensway Kings College Notting Hill London Gate National Charing Cross Green Park Gallery Kensington Waterloo Palace Royal College Westminster of Arts Hyde Park London St James’s Corner Eye High Street Knightsbridge Buckingham Park Kensington Imperial College Palace Big Ben Lambeth Natural History Westminster North Museum Abbey Gloucester Road London Victoria Sloane Square South Kensington Chelsea College of Arts Earl’s Court Tate Britain Saatchi Gallery Pimlico Vauxhall West Brompton Oval Fulham Broadway Battersea Park Local demographic and Connectivity economic trends Due to its central location, Pimlico is well Location based on nearby top-performing The population of the City of Westminster connected to the rest of London, both by schools can also be a strong factor in local currently stands at 242,300, an increase of underground (Pimlico or Sloane Square average house prices. Research has shown 10% or an additional 23,000 people since stations), National Rail (Victoria Rail Station), that homes located near top-performing 2011 census and 34% since 2001. It is and above ground by car or on foot. From schools can add anywhere from 16% – 28% expected to grow by a further 6% to 256,800 Pimlico Underground station, Oxford Circus to home values. There are six schools within by 2021. is just an 8 minute journey or 40 minute one mile of Pimlico, including private walk, Liverpool Street is a 23 minute journey, preparatory schools, academies and Church Pimlico itself has a population of nearly while South Kensington is 11 minutes on of England, with nearby Westminster School 40,000 residents, which makes up the Underground from Sloane Square. consistently ranking as one of the country’s around 17% of the City of Westminster’s Similarly, it is well connected to many of top schools for educational performance. total population. London’s top-class universities: Westminster’s seemingly low employment Travel times to London universities level of 67.4% belies the true nature of from Ebury Place, SW1 Distance from London schools economic activity in the borough, as its unemployment rate is just 5.7%, slightly Imperial College 10 minutes* Eaton House 0.5 miles below the London average of 6.0%. # Furthermore, with average earnings of London School of Economics 27 minutes The Grey Coat Hospital 0.8 miles £42,798, this is 29% higher than the wider University College London 28 minutes+ Francis Holland School 0.4 miles London average and the second highest # earnings of all the boroughs in London. King’s College London 24 minutes Garden House School 0.6 miles Central St Martins 32 minutes+ Westminster School 1 mile The area attracts a young, professional, and affluent demographic with 33% of residents Chelsea College of Arts 6 minutes* Pimlico Academy 0.5 miles aged between 25 and 40, compared with Royal College of Arts 18 minutes* St Paul’s School 4.5 miles 20% across the rest of the UK. As a result, there is a high demand for privately rented Cass Business School 29 minutes+ City of London School 3.1 miles accommodation. This is revealed in the University of Westminster 24 minutes+ City of London School for Girl’s 3.7 miles increased numbers of renters in the borough, the proportion of which now accounts for *by car #via Sloane Square +via Victoria 40% of all households, up from 32% a decade earlier and reflecting an increase of 12,500 households. Meanwhile looking at Pimlico in detail, there are an estimated 6,200 households privately renting, and a further 5,600 households who own their property. The private rented sector has again increased dramatically in this area, up 42% over the decade, equivalent to an additional 2,000 households. London housing market overview Property prices in Pimlico and surrounding areas London is one of a handful of global cities Average flat prices in Pimlico have risen by Flat prices in Battersea Park, slightly further that attract the most affluent international 5.5% since 2010 and are currently £954,526; afield and located on the south bank of the buyers. As a result, London’s prime and this is 25% below the City of Westminster Thames, are currently £1.1 million while in super-prime prices are among the highest average of £1,264,589 but more than double Victoria, the area surrounding Victoria in the world, up there with Hong Kong and the London wide average of £466,300 Railway Station and north and east towards New York. The prime market steadied for a flat. Pall Mall and Trafalgar Square, current somewhat last year reflecting the uncertainty average flat prices are 18% above the of the election, but we expect some modest When compared with prices in nearby Pimlico average. growth to return this year. locations schemes, it is evident that Pimlico is extremely good value considering Average rents in Westminster are now London attracts a multitude of buyers from the location, ease of travel, and amenities. £3,188pcm, an increase of 43% over the ten all around the world with the desirability of Neighbouring Chelsea posts current years to 2016, This is a nearly 85% over the house prices continuing to see strong averages of £1.7 million for a flat, while average London rent of £2,102pcm, and growth. According to the Land Registry, flats in Belgravia, to the north of Pimlico, reflects the centralised location of house prices in London grew by 12.3% average £2.1 million. Westminster, thus reduced travel costs and year on year in July, up from 14.5% in June. the premium which people are willing to pay The average price of a London home is to live so centrally in London. now £484,716. Pimlico price comparison Activity in the new build market remains extremely strong and demand is high, with 63% of the 62,036 new build homes £2.5m under construction already sold. This is the highest absorption rate of new build £2.0m stock in recent years. £1.5m £1.0m Average apartment price Average £0.5m Nine Elms Pimlico Battersea Victoria Chelsea Belgravia Park House Price Growth forecast During the first six months of 2016, a total of 110 units have been sold in Pimlico, and 5 year growth of these 91% consisted of apartments. 2016 2017 2018 2019 2020 2016–20* The vast majority of transactions conducted in the area pertain to second hand stock, Prime Central London 3% 3% 5% 6% 6% 25% with 94% of all transactions taking place so far this year, falling into this category. London 5% 2% 4% 6% 6% 25% However, of the very limited new build stock that has changed hands, these UK 3% 2% 3% 5% 5% 19% posted an 84% premium over their second * Cumulative growth hand counterparts. Despite an increasing population in this Average house price index area, and resultant increase in households and demand for homes, there has been just an additional 3,811 new homes built in 230 Westminster since 2010. This suggests a 210 chronic undersupply of housing, compared with target levels. Demand for homes in 190 Westminster hugely outweighs supply. 170 There are 34 schemes currently under construction, providing 2,500 units; 150 56% are already sold. Of these, just three 130 are located in Pimlico, offering a total of 74 private units. 110 90 Average house price index (Base = Jan 2007) Average 70 50 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 London Inner London Westminster Base Contacts Jennet Siebrits Mark Collins Tom Bryant Head of Residential Research Chairman of Residential Director +44 20 7182 2066 +44 20 7182 2264 +44 20 7182 2562 [email protected] [email protected] [email protected] Sources CBRE, Land Registry, Molior, Office for National Statistics, Rightmove Photography Inside Page 1. Imperial College London: e X p o s e / Shutterstock.com Disclaimer 2016 CBRE CBRE Limited confirms that information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt their accuracy, we have not verified them and make no guarantee, warranty or representation about them. It is your responsibility to confirm independently their accuracy and completeness.