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.