Want a luxury lifestyle? That’ll cost you £1.7m
10th May, 2017
Living in a postcode that offers residents a luxury lifestyle will cost buyers £1.7m more than the wider London average, according to our latest research.
Average property prices in London currently stand at £634,891 (Q1 2017) but buyers looking for property in an area that offers a particular lifestyle should expect a significant premium, or discount, depending on the lifestyle they’re looking for. In London’s ‘Luxury Living’ zone, average prices currently stand at £2,341,750.
Through analysis of 14 sets of socio-economic and property market data, KFH has defined London’s Lifestyle Zones, a new way to categorise London’s property market to reflect the way Londoners live rather than simply by geographical region or local authority boundary. Read more about our methodology here.
Those looking for a cosmopolitan city lifestyle can expect to pay £534,700 on top of the London average in order to acquire property in London’s ‘City Living’ zone. While those looking for a home in one of London’s ‘Urban Villages’ are likely to have to pay £146,517 more than the wider London average. Buyers looking for the lifestyle offered in ‘Suburban London’ will enjoy a discount on the wider London average, with prices currently £174,416 below the overall average in the capital.
Price growth strongest in Suburban London
Average sales prices in the different lifestyle zones have fared differently over the last twelve months. The strongest growth in average prices has been in Suburban London with prices rising 10.3% since Q1 2016. Prices in the Urban Villages zone have also seen strong annual growth of 7.8%. Prices in the City Living zone have risen just 2.4% over the last year, while prices in the Luxury Living zone have fallen 2.3% over the same period.
Robert McLaughlin, Sales Director at KFH, said:
“We wanted to analyze London’s property market in a more meaningful way than simply referring to prime markets and geographical locations so we developed a model that demonstrates the cost of property in an area that offers a particular lifestyle. Clearly, economic and political uncertainty over the last 12 to 18 months has made living a luxury or city lifestyle a more affordable prospect than a year ago and we’ve seen growing interest from buyers and investors in these locations thanks to the relative weakness of the pound. Increased confidence is starting to ripple out into the outer markets with demand from those seeking an urban village or suburban lifestyle causing strong price growth in these areas.”
Lifestyle zone characteristics
Those who work in central London and require a home with an easy commute might automatically assume the most central locations offer the shortest commute times. However, average commute times are actually shortest in the City Living zone, taking just 24 minutes on average to get into Bank via public transport. This compares to 28.5 minutes in the Luxury Living zone and a wider London average of 44 minutes.
London is one of the greenest cities in the world with just under a quarter (23.5%) of its total land area made up of green open space. For those looking for a home in an area with an abundance of green space, Suburban Living is the only lifestyle zone with an above average amount at 31.8% of the zone’s total area. For those looking for green areas closer to home, domestic gardens make up 21% of London’s total area with Urban Villages and Suburban London enjoying 22% and 29.8% of land allocated to domestic gardens.
Robert McLaughlin, added:
“London’s great appeal is that there is something in the Capital for everyone and all the lifestyle zones have their benefits and opportunities depending on a buyer’s priorities. Whether its proximity to Michelin starred restaurants, the prevalence of large family homes with a garden and a driveway or a quick and easy commute, understanding where will suit your lifestyle – and your wallet – is crucial.”
Details on each of London’s Lifestyle Zones are available here.