Shielded from the city by two of the nation’s most beloved parks (Hyde and Regent’s), Marylebone gives its residents respite from the bustle of Zone 1. Within the village, Georgian architecture lines the streets, along short walks to the theatre district. With a curated, boutique adorned high-street for shopping. Perhaps, it’s no wonder that in Marylebone, more homes have sold for over a million pounds than not over the past 10 years.
Prices
Occupying such a sought-after location, of course, comes with a premium. Over the past 12 months, the average home here was sold for £1.5M. In fact, that was the case for the past three years, prices in Marylebone have held up relative to the rest of Central London, with much of Zone 1 recording price falls over the same period.
As with most of Prime Central London (PCL); average prices experienced a rush of growth up until 2017 when the local market peaked. Since then, however, growth has been fairly flat. In Marylebone, the average home has risen in value by 18% over the past decade, with almost all of this growth coming in the first few years. Price growth has run about half around half as fast as the England and Wales average over the same period.
However, looking further back, over the past 20 years, price growth here has been some of the fastest in the country. In Marylebone the average home grew in value by 232%, more than double the growth seen in the rest of England and Wales and some 100% faster than those across London as a whole.
Rising rents
Rental growth in Marylebone has followed the inner-city trend this year – levelling off as we approach the summer. In the first half of 2024, the average home was let for just over £4,000 a month. This is just 1% lower than in the same period last year.
Rental growth in Marylebone has followed wider Inner London trends this year – levelling off as we approach the summer. In the first half of 2024, the average home was let for just over £4,000 a month. This is just 1% lower than in the same period last year.
This stabilisation of rents implies the period of turbulence brought on by the pandemic and rising interest rates is approaching an end. While interest rates remain high, bets are now being called on when, not if, they will come down - which will apply some downward pressure on mortgage costs, pushing up net yields.
What's next?
Despite a number of uncertainties for the housing market over the coming years, namely higher interest rates and some form of rental reform, we’re projecting rents to continue rising faster than house prices, which is positive news for investors. Locally, potential stamp duty increases for foreign nationals, and changes to the tax treatment of ‘non-doms’ could dampen house price growth . But in return, is likely to stimulate rents due to a lack of supply and increased demand from would-be buyers.
Looking longer-term, it looks like we’re nearing the end of the current property cycle, which began in 2009. If history serves as a guide, as a new cycle begins, London’s price growth will likely outpace the rest of the UK. Starting with areas such as Marylebone; at the heart of the city.
