Marylebone, W1 a Local Market Review

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Marylebone, W1 A local market review Marylebone Location snapshot Marylebone is located just north of Oxford As a place to live, Marylebone offers Street and east of Regents Park. Set in prime residents an urban village atmosphere and a Located just minutes away from central London, the area’s popularity has strong sense of community. Characterised by the hustle and bustle of Oxford been longstanding; in the 18th century, the not only Harley Street but Baker Street, majority of Marylebone was owned by a Gloucester Place and Marylebone High Street, Marylebone is a true selection of wealthy families whose names Street. It is also home to a hub of cultural urban village and offers a pocket still adorn the streets and squares today – hotspots such as Madame Tussauds and of tranquillity within the among them are Portman and Cavendish. The Sherlock Homes Museum. In addition, the area boasts an array of galleries fast-paced heart of London. This history is immediately evident from including the world renowned Wallace Made up of a New York style the aesthetics of the area. Indeed, Collection and is a veritable foodie haven, grid of streets, Georgian squares, Marylebone’s streets are lined with homes boasting an eclectic mix of cafes, boutique terraces, boutiques and high hailing from the Georgian, Victorian and eateries and luxury restaurants. Edwardian eras. It was in the attic of one end restaurants such as Chiltern of these homes – 57 Wimpole Street – that Firehouse and the Ivy café, Paul McCartney is rumoured to have Marylebone boasts previous penned the song: ‘Yesterday’. The majority of these period properties have now been residents such as Charles converted into flats, with properties Dickens, T.S Elliot, Madonna, surrounding garden squares being the John Lennon and Paul most desirable and conducting a significant premium. In addition, there is a scattering of McCartney. In addition, new build, high end flats popping up, the area is home to Harley which, despite the aesthetic appeal of Street, London’s world yesteryear, are currently selling at a huge 93% premium when compared with their renownedrow of world class second hand counterparts. medical specialists.

Sherlock Holmes Madame Tussauds Museum Great Portland Street Regent’s Park Baker Street Marylebone

BAKER ST.

GLOUCESTER PLACE The Landmark MARYLEBONE HIGH ST. Hotel HARLEY ST.

Chiltern Firehouse Riding House Café

Royal China Club The Langham

Wallace The Ivy Café Collection University of Westminster Wigmore Hall Retailers John Lewis

Restaurants Bond Street Oxford Circus Selfridges Hotels Marble Arch Cultural Education Local demographics and Tenure profile demand for housing

Marylebone attracts a mix of residents, from According to Nomis, 71.4% of people living 100% high profile celebrities to professionals and in Marylebone are employed. This is higher young couples. But despite its fashionable than both the borough of Westminster and 90% profile, Marylebone is kept down to earth by the rest of the nation. As a result, 80% 41% its strong community, friendly local shop unemployment levels in the area are low 56% owners and long term residents. at 4.9%. The majority of employed residents 70% in Marylebone work as professionals, According to the latest census data, the managers and senior officials. 60% population of Marylebone has grown 17% in 50% the last ten years. This is slightly below the In terms of tenure, 32% of all property 27% wider borough of Westminster, which grew in Marylebone is owner occupied, 40% 10% 21% in the same time frame. As a result of 53% is privately rented and the rest is Proportion of households the population growth, households have socially rented. Comparatively, within the 30% grown by 13% between 2001 and 2011 and wider borough 32% is owner occupied, now total 22,009. This represents a growth of 41% is privately rented and the rest is 20% 34% 32% approximately 540 homes per year. socially rented. 10% Looking more specifically at Marylebone There are currently 17 schemes under High Street, there are currently only 10,366 construction in Marylebone High Street Marylebone Westminster people living in the area, making up 5% of providing a total of 251 private units, 88% of the total population of Westminster. these are office to residential conversions. Private rented Social rented Owner occupied

The Mansion, W1 Housing market trends Price comparison

In the post-recession recovery period House price growth in Marylebone has London’s housing market has performed consistently outperformed the wider £3,000,000 strongly, outperforming the wider UK market borough. In terms of growth, property prices by a significant margin. Prices across the city in Marylebone have increased by 137% £2,500,000 are now 45% above their previous peak. in the past ten years – this is significantly higher than the growth rate across London £2,000,000 Some of the strongest growth occurred in overall (of 87%). prime central London, where prices are now £1,500,000 80% above peak. During 2015, activity London is one of a handful of global cities slowed and growth started to cool. However, that attract the most affluent international this is something we anticipated and we buyers. As a result, prices for London’s apartment price Average £1,000,000 welcome an orderly slowdown. Fears of a super prime homes are among the highest London house price bubble have subsided in the world, up there with Hong Kong £500,000 and the market is maintaining sustainable and New York. and robust growth, with 12% inflation over the last year. Moreover, activity in the new Average house prices in Marylebone are build market remains extremely strong and currently £2,129,939 – this is 56% higher Soho Mayfair demand is high, with 67% of the 51,448 new than the Westminster borough average of Fitzrovia Marylebone build homes under construction already sold. £1,361,692 and over four times the average Westminster This is one of the highest absorption rate of for the wider London area. Comparatively, new build stock in recent years. those living in affluent Mayfair have a slightly higher average property price of £2,437,752, House price growth across Westminster has whereas those living in neighbouring been extremely strong over the past few Fitzrovia have a lower average property years, rebounding almost immediately price of £1,270,071. following the global financial crisis and consistently outperforming wider London. Housing market prospects Average house price index

Price growth in the prime market steadied somewhat last year reflecting the uncertainty 220 of the election, but we expect modest growth of around 3% to return this year. Marylebone 200 is likely to outperform because of its particular supply and demand dynamics, with higher price growth reflecting the limited 180 construction in the area.

160 The GLA estimates that over the next decade around 1,068 units per annum need to be built in Westminster to satisfy demand. 140 However, over the previous ten years, average annual completions have fallen significantly short of this at 255 per year. 120 There are currently just 30 schemes under construction.

Average house price index (Base = Jan 2007) Average 100

Much of the development in Westminster in recent years has been office to residential 80 conversions; 83% of all stock completed 2007 2008 2009 2010 2011 2012 2013 2014 2015 since 2011 was a conversion. However, Westminster Council has become concerned about the resulting loss of office space. Prime Central London London England and Wales Base Consequently, restrictions limiting the number of these conversions have been put in place.

This trend of office to residential conversions is evident in Marylebone, with 15 of the 17 House Price Growth forecast new housing developments currently under construction being an office to residential 5 year growth conversion. As this type of stock will be 2016 2017 2018 2019 2016–20 limited going forward there may well be a consequent increase in prices. UK 3% 3% 4% 5% 28%

London 5% 3% 5% 6% 22% Contacts Jennet Siebrits Mark Collins Head of Residential Research Chairman of Residential +44 20 7182 2066 +44 20 7182 2264 [email protected] [email protected]

Jamie Gunning Shaun Macnamara Head of Residential Development Head of West End Sales Sales & Consultancy +44 20 7420 3087 +44 20 7182 2005 [email protected] [email protected]

Sources CBRE, Land Registry, Molior, Rightmove

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