A growing market, Earl's Court is well positioned to become part of the established prime markets.
Earl’s Court remains one of the most promising markets in close proximity to central London. It has the housing stock to become a more established prime location and the catalyst for change is likely to be regeneration and new investment into the area.
The existing housing stock in both Earl’s Court and Barons Court consists of garden squares, roads of Victorian red brick mansion flats and large four and five storey white stucco fronted terrace houses. This is similar to the neighbouring prime markets of Chelsea and Kensington.
Earl’s Court currently sits between the two higher value prime housing markets of Fulham to the south and prime central London (PCL) to the east.
The value gap between Earl’s Court and PCL is substantial. In the ward of Earl’s Court, as illustrated on Map 1, the average sale price in 2014 was £1,020,000, significantly cheaper than Abingdon to the north and Redcliffe to the south, which had average sale values of £1,700,000 and £1,650,000 respectively.
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FIGURE 1The Earl's Court housing market in 2014*
A look at where the sales happened and at what value
Source: Land Registry *12 months to Nov 2014
In the ward of North End, to the west of Earl’s Court, values are even lower with an average sale price of £640,000. This is despite much of the housing stock mirroring the properties in PCL, indicating potential for significant uplift.
The rental values around Earl’s Court vary significantly depending on property type and location but also offer good value. At just under £2,300, the median monthly rent in Earl’s Court (SW5) is higher than the London average at £1,300 but lower than the typical rents paid in the borough of Kensington and Chelsea with a median monthly rent of £2,600 according to Rightmove.
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TABLE 1What would the same property sell/rent for on our featured roads?
1st floor flat, 700 sq ft, 2 beds & 2 baths
Source: Savills Research
Change is already underway in the area. Earl’s Court is attracting an increased amount of investment and many of the hotels are now being restored back to their residential use. The biggest change will be the redevelopment around the former Earls Court exhibition centre, a development of 77 acres (see Development page). Construction has already begun on the first phase but the entire Masterplan is a long-term project.
A regeneration site of this scale is genuinely unique in central London. As development continues and connectivity is improved, particularly from east to west over the railway line, we believe the latent value of the housing stock in locations surrounding the development will be progressively unlocked by rising demand from increasingly affluent buyers and tenants.
Over time Earl’s Court will continue to establish itself as a prime destination and will bridge the gap between more expensive neighbouring locations.
.jpg "Earls Court Square")
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