Prime Central London: An Enduring Legacy for Your High-Net-Worth Clients?

Looking for secure, high-growth investment options for your high-net-worth clients? Prime Central London (PCL) property could be the ideal addition to their portfolios.

Resilience in a Shifting Market

While some property markets have seen recent fluctuations, PCL has demonstrated remarkable stability. Despite global economic uncertainties, PCL values have only dipped slightly, experiencing a mere 1.2% decrease over the past year. Savills have also forecasted PCL to be the only residential market not to experience a dip in values in 2024. This resilience highlights the enduring appeal of PCL for a specific type of investor.

By 2025, growth is expected to return, with forecasts suggesting an overall increase in house prices of 18.7% over the next 5 years. To put it into real-life figures, buying a beautiful two-bedroom apartment in Eaton Lane, Belgravia at £4.13m could yield your clients £772,310 by 2028 with the predicted forecast, solidifying PCL’s position as a strong investment option.

Source | Savills

Beyond the investment

PCL has long been viewed as a secure investment, particularly for international buyers seeking a stable and prestigious asset, as the allure goes beyond just impressive yields. The area remains an unparalleled location offering a unique combination of factors that continues to attract affluent buyers.

As the home to some of London’s most prestigious neighbourhoods, offering proximity to world-class cultural institutions, renowned schools, and exclusive shopping destinations, demand remains high.

Options to diversify for asset-rich, cash-poor clients

For HNW individuals who have accumulated many assets and no longer have verifiable income, this is still a viable option if they are looking to diversify their portfolios with a high-growth asset class like a property in PCL.

How can this be achieved? Notional income. A theoretical income based on asset value can be used to demonstrate an individual’s ability to repay the loan. With a discretionary portfolio of £12 million, for example, a client could potentially qualify for a mortgage of £3.3 million.

While every client’s circumstances are unique, there’s always room to explore the options.

If your clients are interested in considering their options to expand their portfolio, schedule a complimentary call with our specialist private client team.

Please note: a mortgage is secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.